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maybe not? suppose to go down but up after xd..........hahaha
It may start sinking again next week..Latest annoucement by Rickmers...One bank already started invoking market disruption clause and up their loan interest rate..Many may soon follow.. http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_BF9FF3EB8512C2034825762000331330/$file/REVISION_IN_INTEREST_RATE_ON_RICKMERS_MARITIME_LOAN.pdf?openelementREVISION IN INTEREST RATE ON RICKMERS MARITIME’S LOAN
Singapore, 28 August 2009 – Further to its announcement on 29 May 2009, Rickmers
Trust Management Pte. Ltd., Trustee-Manager of Rickmers Maritime (the “Trust”),
announced today that the same lending bank for one of Rickmers Maritime’s loans has
continued to invoke the market disruption clause.
Consequently, a higher interest rate is being levied on the loan amounting to US$46.31
million taken by India Navigation Limited, a wholly-owned subsidiary of the Trust. To fix
the interest cost to the Trust, interest rate swap arrangements extending to 30 September
2014 were previously entered into in relation to this loan.
The higher interest rate that is being levied on the loan will result in an increase in interest
cost of approximately US$56,000 for the current fixing period which will end on 30
November 2009. In addition, the increase in the cost of funds has also rendered the
interest rate swaps for this loan ineffective and accordingly, the marked to market losses
will have to be taken into the Trust’s P&L instead of its balance sheet. Whilst the marked
to market losses are currently estimated at US$3 million, the ultimate impact on Rickmers
Maritime’s earnings for FY2009 is not known as this will depend on the movement of
interest rates - LIBOR (London Inter-Bank Offer Rate). There will be, however, no impact
on Rickmers Maritime’s cash flow, on which the business model of the Trust is premised.
The invocation of the market disruption clause arose as LIBOR does not accurately reflect
the current cost of funding for the lending bank. It is not a reflection of the creditworthiness
of Rickmers Maritime, which continues to enjoy good operating cash flows and
is servicing all its loans promptly.
None of Rickmers Maritime’s other nine lending banks has invoked the market disruption
clause.
well...defy logic? u are right! it shld b sinking to 30cts level by now ! but lucky u! still hovering ard 41cts level :P
MikeL2009 ( Date: 26-Aug-2009 16:25) Posted:
Wah seh! This donkey is quite stubborn, defied logic and caused me to lose money!  |
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Wah seh! This donkey is quite stubborn, defied logic and caused me to lose money!
Market is good i think . ..
nvm never crash ,,, then go for those who hold on hehe
this burger is surprising resilence!! haha...i expect it to go <40cts end of the week... :D
Today an interesting day for Rickmer.
Agree with Mike - This ship can go under - concept of bargain hunting doesn't apply here anymore.
The keyword here is "unsustainability". I wouldn't consider it unless they can solve the bullet loans and covenant issues with minimal impact to cash holdings and existing debt.
I think most analysts and forummers have also forgotten about the 30million shortfall, attributable to the vessels due for delivery THIS year. I understand from Mr X that only 170 million secured for a 200 million loan. No one has even raised this as an issue except for Mr X.....caveat emptor!
MikeL2009 ( Date: 25-Aug-2009 15:56) Posted:
| That would be like jumping out of the frying pan and right back into the furnace! Me? I'm staying out even if it drops to 1 ct! |
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That would be like jumping out of the frying pan and right back into the furnace! Me? I'm staying out even if it drops to 1 ct!
No lah, i have no share in this counter. But if the share price drop below 0.30. My mouth will open VERY big.
Wow.....time to collect....liao.
nickyng ( Date: 25-Aug-2009 14:35) Posted:
ahemm...make sure ur jaw dont drop when it open tomor <40cts :D
dealer0168 ( Date: 25-Aug-2009 14:15) Posted:
Seems like Rickmer is dropping b4 XD tomorrow. Emm, tomorrow let see how Rickmers fair (maybe another DROP).
Interesting. Early than expected.
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ahemm...make sure ur jaw dont drop when it open tomor <40cts :D
dealer0168 ( Date: 25-Aug-2009 14:15) Posted:
Seems like Rickmer is dropping b4 XD tomorrow. Emm, tomorrow let see how Rickmers fair (maybe another DROP).
Interesting. Early than expected.
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Ya, man! I feel very freed after dumping this!
freeme ( Date: 25-Aug-2009 14:13) Posted:
I tink u did the right thing.. see how ppl dump them in block of 900lots..
MikeL2009 ( Date: 25-Aug-2009 11:27) Posted:
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Believe me, this guy has been playing stocks for a long time and has made loads of money!
Time to rethink should you decide to get an alias/ new name! Oh, online monikers don't count! |
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Seems like Rickmer is dropping b4 XD tomorrow. Emm, tomorrow let see how Rickmers fair (maybe another DROP).
Interesting. Early than expected.
I tink u did the right thing.. see how ppl dump them in block of 900lots..
MikeL2009 ( Date: 25-Aug-2009 11:27) Posted:
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Believe me, this guy has been playing stocks for a long time and has made loads of money!
Time to rethink should you decide to get an alias/ new name! Oh, online monikers don't count!
freeme ( Date: 25-Aug-2009 11:20) Posted:
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Ah huat .. good name..
Revisit them if they fall below 40cts.. |
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Believe me, this guy has been playing stocks for a long time and has made loads of money!
Time to rethink should you decide to get an alias/ new name! Oh, online monikers don't count!
freeme ( Date: 25-Aug-2009 11:20) Posted:
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Ah huat .. good name..
Revisit them if they fall below 40cts..
MikeL2009 ( Date: 25-Aug-2009 11:07) Posted:
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I was quite stubborn initially until you posted this. I thought to myself, hey, there's wisdom in what you were saying. Sigh, I guess I was still in denial mode then, this being my first shipping stock, having been recommended by a cousin whose name is, incidentally, Ah Huat! So, I was kinda set mentally to HUAT big time from this counter. |
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Ah huat .. good name..
Revisit them if they fall below 40cts..
MikeL2009 ( Date: 25-Aug-2009 11:07) Posted:
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I was quite stubborn initially until you posted this. I thought to myself, hey, there's wisdom in what you were saying. Sigh, I guess I was still in denial mode then, this being my first shipping stock, having been recommended by a cousin whose name is, incidentally, Ah Huat! So, I was kinda set mentally to HUAT big time from this counter.
elysian ( Date: 24-Aug-2009 16:19) Posted:
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Hi ,
Its fine to hold up - but having digested all the information on the Company, i believe it defies
logic to hang on to it. Too many risks - and ur capital may be better served elsewhere, where
there is less risk but reasonable long term returns. There is a possibility that Rickmers might
surprise us all - but personally, I don't like the anxiety and I sleep better knowing that the risks
are more manageable in other counters.
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I was quite stubborn initially until you posted this. I thought to myself, hey, there's wisdom in what you were saying. Sigh, I guess I was still in denial mode then, this being my first shipping stock, having been recommended by a cousin whose name is, incidentally, Ah Huat! So, I was kinda set mentally to HUAT big time from this counter.
elysian ( Date: 24-Aug-2009 16:19) Posted:
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Hi ,
Its fine to hold up - but having digested all the information on the Company, i believe it defies
logic to hang on to it. Too many risks - and ur capital may be better served elsewhere, where
there is less risk but reasonable long term returns. There is a possibility that Rickmers might
surprise us all - but personally, I don't like the anxiety and I sleep better knowing that the risks
are more manageable in other counters.
MikeL2009 ( Date: 24-Aug-2009 15:48) Posted:
I'm staying put! I intend to hold till the refinancing issue is settled - sink or float, dead or alive! |
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Personally, i think you did the right thing, and a more logical act ofcourse.
I have dumped all of mine as well - and transferred to other counters. I would be staying away from Shipping trusts for a long time - reason? - for a Shipping trust to continually grow its NAV, it needs to regularly acquire newbuildings or ships , which means, more loans and more debts. A growing Shipping trust will always be indebted basically. The fact that Ships depreciate every year, compounds this. Unlike Real estate trust, where real estate prices are more likely to appreciate.
Logically, the best Shipping trust counters to own would be one where the Trust is matured, has been in the industry for a long time eg. A Ship normally has a 10-15 year loan and a lifespan of 30 years.
So perhaps, buying into a Shipping Trust, where most of its ships have no more lingering debts and many more productive years, would be a better bet.
Rickmers is sailing into stormy seas - all hands on deck!
MikeL2009 ( Date: 25-Aug-2009 10:27) Posted:
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I finally dumped at 42 cts (bought at 51.5cts). I got worried thinking how much it would go down further after XD, and with news that Maersk is also in the red and will be so for sometime, Rickmers is going to take a long time to recover. Also, since there are good deals to be had, better to sell and swallow some loss, and put the money into other counters. I redeployed the money and bought 10 lots of CitySpring at XD, XR price of 62.5 cts. A better bet, I reckon, even looking at dividends for a long long long time to come.
dealer0168 ( Date: 24-Aug-2009 18:53) Posted:
Tomorrow should be Rickmer last day to be above 0.40. When XD arrived, we may see a further dropping Rickmer.
Let continue monitoring....
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I finally dumped at 42 cts (bought at 51.5cts). I got worried thinking how much it would go down further after XD, and with news that Maersk is also in the red and will be so for sometime, Rickmers is going to take a long time to recover. Also, since there are good deals to be had, better to sell and swallow some loss, and put the money into other counters. I redeployed the money and bought 10 lots of CitySpring at XD, XR price of 62.5 cts. A better bet, I reckon, even looking at dividends for a long long long time to come.
dealer0168 ( Date: 24-Aug-2009 18:53) Posted:
Tomorrow should be Rickmer last day to be above 0.40. When XD arrived, we may see a further dropping Rickmer.
Let continue monitoring....
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Yup .. there are always people who wanted to buy or sell .. just dont get influenced by people . Cos the consequences are beared soley by you. You made , you earn , You break , you part with your money :)
