Box Ships Inc (TEUFF)

[ivfk]

TA, How come the banks are not foreclosing on Dianna Containership? Take a look at the fleet employment table that shows their old rates that have now expired and the new rates. (17-20K per day vs 5-6K per day) Look at their November press releases. They are also scrapping newer ships for 6.6M each yet they carry their fleet of 12 ships for 385 Million on their books. The book value should be 85M. They also have 120M in debt yet the banks are also allowing them to postpone their debt payments. However, DCIX trades at a market cap 21 times higher than TEUFF. It looks to me that the bank are working with Greek Shipping companies to reduce their capacity while helping them to survive this downturn. Rates will eventually go back to the 20K or higher per day rates in a few years and then the asset value of their fleets will be back closer to what they have on their books. Reducing capacity in the shipping industry is in the best interest of shippers and bankers. TEUFF is trading so low for two reasons:

1) The toxic financing deals they accepted increasing outstanding shares from 34 Million to over 100M
2) Management's lack of communication creating distrust

Here is the Dianna Shipping fleet employment table with daily rates that is telling the story:

http://www.dcontainerships.com/our-fleet/fleet-employment-table/

DCIX is now where TEUFF a few months ago. They just had the benefit of higher rates lasting a little while longer.

Just my humble oppinion