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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (37306)	4/8/2010 11:53:24 AM
From: anializer	Respond to of 78717

I went by the balance sheet which is posted as of the the year end Dec 31, 2009 which is on their website. Details on loan repayment schedule are their as well and they were in no violations as of Dec 31. If you have later info please send or post. Thanks

To: Spekulatius who wrote (37306)	4/9/2010 1:45:20 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78717

re FREE - they only disclosed the problems with their covenants in the fine print Y2008 20-F form - the earning released earlier was talking about a solid balance sheet. I don't think FREE's disclosure policy is all that great. I know this because I found it misleading then. it looks like they were able to reduce the leverage somewhat (crisis has ebbed) and they issued 10M (approx. 50% dilution) shares at 1.13$. I know this because I found it remarkable that they had to do this despite a seemingly decent looking balance sheet even before the capital raise. I believe the reason why the bankers are so anxious is because the value of FREE's ships (which were purchased in boom years, except one ship that was purchased in 2009) and are still on the balance sheet at inflated values.