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Strategies & Market Trends : The Aristocrats (tm) -- Ignore unavailable to you. Want to Upgrade?

To: FJV who wrote (4441)	2/12/2024 3:11:06 PM
From: sense	Read Replies (2) \| Respond to of 5621

Yeah. That's right... I poked at it a bit more after posting that... and have another couple of concerns that go beyond the issue in "trust us" re dilution risks in the single issue. One issue is... they did a spin out of their tankers... Announced 16 Nov 22, completed 6 Mar 2023... and the new tanker stock, Toro Corp, has been doing gangbusters. Maybe a good deal if you bought CTRM back before the spin out... Toto trading under $6, earning over $7... has $5.74M in cash, $5.54M in debt... But, the financing of the spin out... appears it included cash contributions from CTRM... the Toro debt... which was supplied in exchange for a note... which is convertible... That, in itself, might be "all and only good" for CTRM... still leaving CTRM "owning" Toro through the note... with it being an asset that is left as a ghost on the balance sheet. Except that the accounting for the note... or what I can find of it in the documents on SEDAR/Edgar... appears to attribute it variously, and only nebulously... leaving it as a value taken from CTRM that may be accruing benefits to "the management"... rather than the CTRM holders ? It appears to make CTRM into a convertible note scam... of sorts... only one in which the convertible note is the marble being used in conducting the shell game... Every high grade scam I've found... isn't a scam based on the lack of value... rather than on the fact of value... the "catch" being in the error in assuming the value that does exist... is attached to a share, rather than firmly fixed in the bottom of someone else's pocket... It appears they've carved out the tankers and in the process have created a set of relationships that have the management playing both ends against the middle... or, more correctly, playing the middle against both ends... It is still true, IMO, that the management decision to spin out the tankers and sell hulls on the container ship side of the business... is the right business decision... for the actual business. However, it doesn't make any difference, at all, it that's the right business decision... if the man in middle is the only beneficiary of the trade being conducted between two shells... and CTRM isn't actually "the business" you expect it to be... So, I think without greater clarity on the financing... and the attachment points of the values in play... there's not sufficient proof of the value that does exist... being likely to stick to a share. There's also an issue or two in the numbers... as the $ attributed as "profits" from the deals done in the sales of hulls...does not appear to be showing up, reflected linearly, in the financials...