Box Ships Inc (TEUFF)

[munhoi]

My main concerns were they stop further dilution and they confirmed that all notes are fully converted - so no more note debts

I confirmed that the only liability were what they said minimal ongoing salary costs of the 2 officers and one finance staff and routine accounts payable


and that they had not gone into new debt to pay for operations


on the rebuilding of the business - all they could tell me was essentially the CEO put a lot of money into the company and related businesses and he is passionate about ensuring they continue

every time I mentioned that shipping rates are at 20 month highs - I just get - its still tough out there

meaning that their primary concern is getting rid of the preferred dividend liability before they can move on is how I translate that in order to attract new financing

Ie you cannot do one without finishing the other is my view like I mentioned in Dec

all I know is like all the Greek shippers the CEO owns the accounting services, all the affiliates that contract with BOX just like Paragon and that all the pots are inter-connected related party transactions - legal in Greek business apparently

and that they all depend on each other for survival so BOX isn't going anywhere is what I get out of it

but they are not ready yet - until I believe the capacity get mothballed further, the scrapping escalates and the rates are substained in the markets

seriously - this is classic Airline copy cat - the Alliances formed in the shipping business stopped canalizing themselves by taking lower contract rates - now they rather idle shops to force the rates up decrease available capacity and have revenues from rates exceed the operating expense per ship

the shipping business killed themselves - I call it dumb and dumber 2 CEOs of the shipping businesses shot themselves in the foot and put themselves where they are

but with a totally clean balance sheet if they can work the preferred shares out

they got a leg up on all the other shippers to be able to get back into the business without heavy debts saddled like most of the shippers still are

bad part is the $11 BOX ships shares used to be along time ago will be worth anywhere between 5 cents to 30 cents when this is done ( more if you wait a lot longer - of course no one will) so the damage is already been done

5 cents to max 30 cents isn't much to get out of this when they have this all fixed - I am thinking closer to 8 to 12 cents is more the realistic range although the shippers that restructured correctly have seen their shares do well like GLBS etc. but I think they are not the norm

I think here 5 cents to max 30 cents recovery is the min max IMHO