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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (34091)	4/6/2009 10:05:51 PM
From: Spekulatius	Read Replies (1) of 78789

re SBLK - looks OK to me as well. In for a few lottery tickets @2.51$. 560M$ in stockholder equity with a 900M$ balance sheet is a fairly low leverage, lower than peers. All capex is discretionary (unless they buy new ships) so they should be able to generate strong FCF for a while. Fleet age is decent and they have quite a few LT charters too. So there is the fact that current assets do not cover current liabilities - in other words a liquidity squeeze. But why would the lender not extend credit to a company with a solid looking balance sheet and plenty of cash flow to handle interest payments? Am I missing something? What is your favorite in this sector?

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