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Strategies & Market Trends : Value Investing
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To: Spekulatius who wrote (33149)12/29/2008 7:40:16 PM
From: E_K_S  Read Replies (1) of 78644
 
At current prices for Ultrapetrol (Bahamas) Ltd. (ULTR) their giving you their ocean shipping and passenger business for free and your buying their river business and offshore supply business at a discount. 43% of their revenue is now derived from their river business which is expected to grow 9% per year (for several years as they double the number of their barges in service by 2010). They have two 12 year credit facilities (totaling $60 million) to finance their growth in their river & offshore supply business. ULTR only has 30 million shares outstanding and have repurchased 2.5 million shares last quarter and still have $35 million remaining in their current repurchase program ( biz.yahoo.com ). Look for the company to step up their share buy back especially at these depressed levels.

The company is quite profitable and should earn $1.35/share in 2009 which reflects a 2.2 PE.

I have 1.5% of the portfolio in this stock with my last buy around $2.50/share. I am still underwater and will probably average down on a few more shares early next year. Company pays no dividend but has the potential to be a five bagger (reversion to their mean 2006-2008 price levels).

River Business Area of Operations



Nice video of their business operations:
ultrapetrol.net

EKS
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