Genco Shipping andTrading Limited (fka GNKOQ)

[eddy2]

http://www.forbes.com/sites/gcaptain/2012/01/18/from-the-high-seas-of-finance-shipping-man/

[JCB5]

Where can I read more about that?

[eddy2]

But now all that is set to change. The canal is undergoing a major facelift, widening the beam to 49m, and ushering in a new era of shipbuilding. Boat builders are bracing for orders as shipping companies look to buy wider, bigger vessels. And at the same time maritime engineers are being given the chance to start with a clean sheet and design ships from scratch.



The new panama canal will allow chances for shipping companies that have ships coming to the useful live to up grade to take advantage of the new Panama Canal as well to outfit the ships with new hydrogen powered engines.

[JCB5]

Thanks Eddy

[eddy2]

I would have to agree with you.

[JCB5]

I still believe we see more upside before June 1 due to the hedge fund purchase of 10% of the stock at a price of 1.73 and 2.00......What is your opinion.....thanks in advance

[eddy2]

Well they do have leased assets that need work that are none performing costing them capital but I can see the rolling over of the debt not paying it off but that will cost lots in up front fees to do that

[eddy2]

So now they are being paid does that mean bills will be paid?

[eddy2]

That is all part of your DD man you got to do that stuff as mundane as it is you got to set up a time line for the revenue on contracts signed and payment that will be received for the work and because it is accure accounting principals being applied here.

[eddy2]

Thanks for the email I didn't know all that.

[eddy2]

Do your own DD but let me tell you with the up coming falling amortization in revenue from the deal

[eddy2]

Whats the name?

[eddy2]

Its not BS. man go back and look in the fillings this deal was some ten years ago under the old name.

[JCB5]

100,000 share buy placed after hours......

[JCB5]

Now we are making money

[JCB5]

Hundreds of thousands of buys went through today....

[JCB5]

Cannel? Where is this mentioned?

[JCB5]

Do you see a 100 % upside possibility before the share conversions? I thought this was less than 8 weeks from now?

[eddy2]

I'm surprised to see it holding they must be purchasing back shares then planning a forward split to sell them at a profit to the strike price against the loses they took in there short sale but tax gain in the end.


This will go into the sub zero range with all the shares outstanding in a years time then the big reversal it is so so classic when there building capital to pay for a lease purchase that is a none revenue purchase for the most part.


It will have a crazy Capex and a bad ROI but lots of ups and downs in the next year for sure but no mind blowing moves over a 100% but hey that isn't so bad to get in on in tough times like this.

[eddy2]

The cannel

[Steady_T]

What project is that?

[JCB5]

Yes.....still holding large 5 figures here....GLTA

[eddy2]

your welcome

[JCB5]

Making money today.... Thanks Genco
Investors

[eddy2]

Who the heck can follow that Sly. Keep it simple man, one liners is all that is needed every one knows this stuff your going over and over about here if not they would be asking questions should they not understand.


Anyone got questions for Sly if not Sly does not need to have his guilt trip here and we can get on with business here.

[eddy2]

I just want to remind folks that .66% is all there right now if you go long. The risk is calculated for investors but should one take there profits you could possibly get as much as an 80% return now that is not to say as we have mentioned that the .66% may change should some of the risk be consumed by redirecting debt ect. ect. as we have looked at here as to what may be taking place in the market as the market looks at interest risk as well as revenue down the road.


Not every crystal ball is the same so there will be lots of up and downs as we proceed forward here into the future.


But let me say that the people who have calculated the .66% return into the future today have tools that many of us don't have a true understanding but they have been in the past very conservative in there calculations and one has to remember that it is up to you as a investor to translate the intrinsic value or good will if you like too that .66% at to days interest saving rates keeping in mind a saving account has zero risk to your personal capital.

[eddy2]

That's how capital is created, good job guys, keep up the good work and there could be a huge bonus at the end of the month for all involved.

[eddy2]

I would like to add something if I will and that is if and should they roll the debt over before any interest hike should happen that the risk will cancel each other as long as debt is not reduced but in fact increased over the hike period to elevate the interest rate hike should it happen.


This is also true for the least agreements as they are often tied too interest rates as well asset values along with future revenue projections that determines the useful live of that asset relative to falling market value based on intrinsic value that of course is tied to interest rates as well as future interest rate hikes.



So you see we have many things one has to consider here when putting a valuation on the company and even the great Warren Buffet admitted can find it tough to come up with a valuation and how much risk one can associated in uncertain times as this.



If they can address some of these issues that we are seeing here this could well be a $2.00 stock tomorrow or maybe three but yes the risk is very high indeed here for that to take place.

[eddy2]

When one associates the high least cost to the low interest rates when calculating the intrinsic value along with the cost of the 6% for leverage along with the cost of equity " dilution as well as administration cost then to add depreciation of the assets never mind falling revenue we have come up with a risk value of $.01 and that is being conservative if interest rates don't go up above 5% in the next coming five years but with the least coming due along with the debt this could go as low as $.002 and maybe that is to conservative a picture into the future.



Do your own DD markets can be wrong and can catch one of guard it is all how one looks at the future risk but for us we will hold our long short position and trade as we see the trends moving in different directions as investors come to there own risk analysis of the above risk that we have pointed out here today as a group of interested individuals.

[eddy2]

2) On June 28, 2011, the Board of Directors of the Company approved issuance of 150,000 shares of companies restricted common stock to American Truck Leasing, LLC1

[eddy2]

That does not make a difference cause every thing has to go through the issuer as far as buying and selling goes and the issuer just happens to be the ones who hold the lease on the ships, the leaser if you like.


So in other words for every seller or buyer there needs a market maker hired by the company for the company it is then the company through its market maker sells the shares for a profit or buys the shares for a depreciated price relative to the asking price the companies bid price.


The bid is always lower then the asking except when the company is selling were there is no bid.


The rules is buy on the bid and sell on the ask when there is no bid as long as there is a spread. Now should there be no takers and the company puts out a bid again then sell your loss and pick up the lower bid always working the spread on both the down side and up side cause don't forget you have a tax advantage on your loss against the up side expense.

[eddy2]

Well because there shares were restricted the company had to buy them or what they could buy and what they couldn't buy they went in to debt paying them out.

When you think about it those folks had to eat as well and if they are restricted then there is only one buyer but what the company can do is turn around and sell them to Joe public at a profit against the debt and that can be used to pay the high lease to purchase agreement set up do to this money generating, oh call it what you like but the problem is when investors won't pay the extra money due to first being to many shares out in the secondary market place driving down the price.

[eddy2]

So what happens to all the employees who got paid in common shares?

[eddy2]

I will believe it when I see it. Were is the cash going to come from unless they eliminate the common shareholders and the public sector cost associated to having a public company.

[eddy2]

Historically, the company has paid 60 percent of employee annual bonuses in stock compensation and 40 percent in cash. Beginning in 2014, the company will accrue the entire bonus compensation within SG&A as cash compensation. Had the company made this change in 2013, there would have been an increase in cash compensation expense within SG&A of $59 million, offset by an equal decrease in non-cash compensation expense, and Adjusted EBITDA would have been $1.565 billion, pro forma for the change.

[I-Man]

Nice chart Eddie, they have been putting these out the last 30+ years.

Ptoday, and under this Administrtaion, maybe 10% of the total working population in America will even have anything close to this....

[JCB5]

Volume is down

[eddy2]

20% pop this morning, nice, good work Sly

[eddy2]

[eddy2]

Now that is a day of trading.

[JCB5]

Very interesting data

[eddy2]

They were cheap, what do you expect. Nothing a little paint and a billion man hours can't fix. It is paying for the expensive hired guns that put this all together for the shareholders that is hard to recover capital from and there not going to fire them selves or family members from the gravy boat while work is being performed.


Double dipping into two cookie jars that is full of shareholders cookies but hey good hired help is hard to come by. To many chiefs and not enough workers to watch over is another problem and the process and administration cost gets drawn out.



The courts looking into the mater of the chapter 11 could request new people to look at what is taking place so I would watch for new people to come in and then wait to see what they have to say about what is taking place there with share holders capital that was spent.

[eddy2]

http://canada.findlegalforms.com/product/residential-lease-agreement-with-option-to-purchase-canada/partner/google/?gclid=CMnU3JKIhL4CFcURMwodX1sAsQ

Could be a lease to purchase and that is why the high rates. The warrants is to speed the process along maybe.

[Steady_T]

Then what's the point of your post? They answer the phone? I believe what they have put in writing and filed with the SEC.

[JCB5]

No details to pass on just call NY office.....a lengthy conversation

[eddy2]

They can't force you to buy equity that is extortion but what you can do is sell the warrants but there will be a time limit as to how much time you will have to do that. it is called having first rights to new shares at a discount to the strike price in other words interest payment for the borrowing of equity as well as a way to avoid dilution due too fractional shares cause of the huge number of shares sold of late and into the future.


They are giving shareholders an option of dilution or no dilution I would opt for the later my self of those two options or better yet stay clear of the whole thing and trade the stock.



She can be a dirty game. Insiders wrack up personal debt on up grading equipment as revenue drops when equipment is taken out of service and equipment under a private ownership takes the place of the old equipment at crazy lease prices but hey they all do it these guys are just a little nicer then most letting you still have the chance to stay in the game with new up dated equipment coming on line.



They are taking a risk as well the collateral in homes and cars they must of put up to secure the loans is crazy so be thankful for small miracles I would say.

[Steady_T]

Please share what they said. What I posted was taken from the filings.

If I got it wrong, please correct me.

[JCB5]

I called Genco's office and that was not the info given to me.

[113399]

Don't try to argue with eddy. No point! His posts make no sense. He was doing the same thing with EXMCQ.

[Steady_T]

That has NOTHING to do with the present situation that gnkoQ is in.

The present shareholders, including institutions, will be wiped out.

They will get very high strike priced warrants in return.

So lets review.....

Present shareholders stock will go to ZERO value. Presently valued at $1.78 per share.

In return for the value going to ZERO, present shareholders will warrants representing 6% of the stock that they presently own 100% of, that may or may not have ANY VALUE. Of course the good news is, you may have to wait up to 7 years to find out if those warrants ever have any value.

Sounds like a solid investment in hopium.