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

To: Paul Senior who wrote (40874)	1/9/2012 2:40:21 PM
From: E_K_S	Respond to of 78594

StealthGas, Inc. (GASS) -NasdaqGS - GN @ $11.53/share (probably because of large BV = $14.77/share) Company seems to have a lot of value according to the GN. Debt is still quite high much more than I like but typical of these shipping stocks. Analysts sees huge earnings growth in 2012 to $0.89/share. Current trailing earnings is at $0.40/share. PE is 10.27. STEALTHGAS INC. Announces New Charter Arrangements for Seven Vessels and the Sale of One Vessel finance.yahoo.com From the article:"...Sale of Vessel The Company has entered into an agreement to sell the smallest vessel in its fleet, the 1,320cbm, built 1991, LPG carrier, Gas Tiny. The delivery of the vessel to its new owners is scheduled towards the end of January. The Company expects to book a profit from the sale of approximately $1.3 million in the first quarter of 2012. Chartering Update The company has also concluded the following chartering arrangements: The time charter for its 3,211cbm, built 1990, LPG carrier, Gas Crystal has been extended until April 2012. The time charter for its 6,572cbm, built 1995, LPG carrier, Gas Marathon has been extended until January 2013. The charterer has an option to extend the charter for a further six months. The time charter for its 6,300cbm, built 2007, LPG carrier, Gas Flawless has been extended until May 2012. Two one-year time charters with a chemical company for its 3,434cbm, built 1992, LPG carrier, Gas Arctic and its 3,434cbm, built 1991, LPG carrier, Gas Ice, commencing in January. The charterer has an option to extend the charters for a further one year. A five-year bareboat charter with a middle eastern state company for its newbuilding 7,500cbm LPG carrier, Gas Husky, to be delivered in January. A two year time charter with a middle eastern gas company for its 5,000cbm , built 1995, LPG carrier, Catterick. The charterer has an option to extend the charter for a further one year. With the above charter arrangements the Company will secure future revenues of approximately $30 million. Contracted coverage for the fleet is elevated to 71% for 2012 and 38% for 2013...." ------------------------------------------------------------------------------- Glad to see that company will free up some cash w/ their sale. The new time charters are a net positive especially that two of the seven are ling term (ie. two & five year contracts). I believe you saw the potential for this stock to achieve $9.00/share which is a double from today's price of $4.13/share. I am not too sure if the Yahoo BV of $14.77/share is meaningful. Maybe the tangible BV w/ some sort of adjustment reflecting the scrap value of the fleet might be a better number to use. I do know they have a lot of their capital tied up into their fleet and are leveraged to the max with debt. Not a good mix if the cycle has yet to bottom. Maybe w/ today's announcement of the new charters is signaling that the bottom is in and we are headed back up. EKS