Box Ships Inc (Preferred) (TEUCF)

[ivfk]

Good summary, MB! A couple of additions to your post. There are approximately 916K outstanding shares of TEUCF. As you said they pay dividend of 9% if you buy the share at $25. If you manage to get in at around 4, the annual dividend is over 50%. The last dividend they paid was in January of 2016. Even though the board suspended the dividend, it is still accumulating at a rate of $2.25 per share for each year. Like you said, if the company should liquidate, they have to pay out all 916,000 preferred shares at $25 plus the accumulated missed dividends.

I believe that the CEO owns a large portion of the outstanding shares and has a vested interest in getting paid himself.

This is not a stock to trade. This is only a buy and hold opportunity betting on the survival of the company. My time horizon is 2 to 3 years. Once you are in, it is hard to get out. When Box Ship was delisted, the common went to the regular OTC Market which is much easier to trade. Because TEUCF had less than 1 Million outstanding shares, the symbol was delisted to the OTC Grey Market which makes it very hard to trade.

Box Ship will have to face lots of head winds in the next 2 years but with the sale of the 2 ships they have enough cash to survive. I also think that once they reinstate the dividend and move the stock to a better trading environment, this will jump back to the par value of $25 per share.