Top Ships - No Dilution For 12 Months Is A Game Changer
Mar. 29, 2018 4:16 AM ET|Includes: TOP Ships Inc. (TOPS)
No more dilution.
Net asset value = 136mil.
Eco Modern Vessels.
Higher demand and higher charter rates.
Net asset value: 136mil (It’s even more now because the value of the 0-5 years old MR vessels spiked 5% in March 2018 )
Cash in hand: 24mil
European bank agreement that was announced is a game changer. They are very strict with their money so they believe TOPS will meet all the criteria.
2016 / 2017 Revenue increased by 46%
No more offerings and end of Crede deal is a game changer ( shorts have no secure cover )
TOPS strategy with modern vessels that meet all the criteria for future regulations will be a big advantage for TOPS. 15% of the total world MR fleet will not comply with regulations. Let’s say demand goes as projected up 5 % and supply goes down to -15 %. That’s a huge deal in shipping. Charter rates will spike hard on that.
New building vessels will be priced at much higher value than today. In March 2018 we have a 5% MR vessel value increase ( 5% is a big number when we are talking about a fleet worth 500mil )
Stable contracts with the big major oil companies: STENA BULK, BP SHIPPING, SHELL,
Charter rates started going up since December 2017
WHY WAS THE REVERSE SPLIT GOOD
The benefit of a reverse split is that by reducing the shares outstanding and share float, the stock becomes harder to borrow, making it difficult for short sellers to short the stock.
13D ( showing us the free float, possible that subsidiaries bought shares)
20F ( full earnings report where we can see the updated NAV – net asset value )
Contract update with BP Shipping,
Share buyback by the company ( they have 24mil in cash and they fixed the financing for 2018 vessels )
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in TOPS over the next 72 hours.