VLAD, in FLC's last filing,they stated they would have to place more debt-end 98/beginning 99..have they done this? Could be one of the reasons for the stocks decline,considering the high debtload they already carry.Will they have a problem placing more debt with decent terms,considering the leverage already?
"Based on projected cash flows, the Company estimates that in order to fulfill its obligations on its construction projects, it will
be required to obtain in the fourth quarter of 1998 or first quarter of 1999 significant incremental financing in addition to
currently committed vendor and shipyard financing." from the 10-Q
Should be an announcement of a drillship and semi completion this quarter.....as I said I sold yesterday at the open(bought at 7.00)..Chart continues to deteriorate breaking to new lows,a print of 6.00 will close another "O" box on the P&F chart...I only have to wonder,considering prices of other OSX stocks, if FLC has lost it's attractiveness..The debt is a big nut to carry,with low petroleum prices,IMO(I always relate this to building a spec house,-if you build the house and then can't sell it right away,your profit goes to the bank to pay the interest on the construction loan,granted this is simplistic,but the principles still apply,IMO)Some of their constuction projects do not have a locked in contract on completion....DD
PS: as Razorbak used to say,cashflow is the life blood---I might add now with low oil prices,FLC is bleeding.. |
