In the latest announcement by Rickmers, it is stated that the re-sale market of vessels are very weak.
The prices for 4400 TEU & 3500 TEU 10 years old vessels are trading at below US$10 million.
Rickmers has 20 fleets of vessels. Assuming all the vessels are 4400 or 3500 TEUs, the market values of its vessels should not be more than US$200 million.
Its outstanding debts before debt restructure, is about US$400 million.
On its financial statement, its vessel is recorded as US$640 million , but market value is worth US$200 million or less.
Technically, rickmers is worth negative US$200 ( US$200 million asset - US$400 million ) ,
we are looking at negative US$0.22 per share.
In my opinion, it is not worth the bet....
The prices for 4400 TEU & 3500 TEU 10 years old vessels are trading at below US$10 million.
Rickmers has 20 fleets of vessels. Assuming all the vessels are 4400 or 3500 TEUs, the market values of its vessels should not be more than US$200 million.
Its outstanding debts before debt restructure, is about US$400 million.
On its financial statement, its vessel is recorded as US$640 million , but market value is worth US$200 million or less.
Technically, rickmers is worth negative US$200 ( US$200 million asset - US$400 million ) ,
we are looking at negative US$0.22 per share.
In my opinion, it is not worth the bet....
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