Most enterprises are valued by 4 or 5 times their NAV when they are developing. Basically, there are insufficient revenues to apply a multiplier. Next year will be a little bit different. Presumably there will be positive revenues that can be used with at least a 15x time revenues to determine a pps. Up to now there have been nothing but negative revenues and the addition of new ships in the past 2 quarters. No history to have a clear picture of revenues yet. That is unless you are willing to take GE at his word.
Q3 should be relatively good for DRYS the business. Most of their ships will have been delivered. The VLGCs will be delivered in Sept, Oct, and Dec. The real impact from those deliveries should be felt starting with Q3 and going forward. Drybulk is improving; OSVR is mostly laid up and servicing an almost dead customer base so they are negative to the bottom line.
I was expecting BWS to have an impact starting Q3, but shippers dodged that bullet. BWS has been moved out starting in 2 years. Scrapping would have picked up significantly as owners moved to avoid the cost to older ships. This would have taken tonnage out of the market and had a positive effect on rates. In the mean time, newer ships have an advantage over older ships and are generally selected first. So DRYS should have a competitive advantage with the exception of their Panamax fleet, which is older.
