Box Ships Inc (TEUFF)

[munhoi]

this is just my view but:

the balance sheet of 99% of the existing public shipping company is overstated by up to 80% ie the value of the ships today is only 20% to 30% of what they are on their books unless they just bought the ships recently.

in other words they may have a positive shareholders equity on their balance sheet but if you were to sell those ships they would have negative shareholders equity combine that with the avg debt of 1/2 billion to some with 52 billion worth of debt service to pay off - you got most shippers teetering on bankruptcy

here is the deal - BOX does not have any debts though they have no ships - here they can have a fresh start get ships at market prices and sign contracts only if they produce positive EBITA

as a result - having no ships in todays market could actually work out much better then having underwater ships that are worth 30% of their purchase price on their balance sheets with cash drain from bad contracts on heavily indebted ships

they can get traditional financing with this balance sheet they have with no real debts - just unpaid dividends that they can hold off until they have EBITA again

do not let the CEO steal this company vote the incompetents out that lost the 1/2 billion in asset value due to their greed

with right mgmt. this company can return money back to shareholders