I am not sure what the question is? DRYS currently has 10 tankers that are being spun off through an IPO. Tankships (TNKS) is scheduled to be public next month. The tankers represent approximately $600 million in DRYS assets with $300 million in debt. GE plans to add 3 more tankers for $206 million.
The IPO is planned to bring in $100 million, which is targeted to pay in part for the new tankers. GE and 2 of his ex's will also get $93 million in TNKS stock for the ships. Less fees and such, there seems to be a gap of $13 million or so after the IPO proceeds and stock are payed out. Essentially, 3 new tankers for $13 million in debt or $806 million in assets with $313 million debt. That is a very good ration for a shipping company. Now through in the estimated $80+ million in revenues and TNKS should be a very good company to own.
Considering how DRYS accounts on its books for ORIG, TNKS will probably continue to be included, as well. However, based on ORIG's share price of $9.10 this morning, DRYS ownership value is ~$713 million and yet DRYS trades with a current market cap of $719 million. So the tankers and drybulk ships are valued at a whopping $6 million this morning. So doing the IPO next month could easily add $800-$1,000 million to DRYS value. Presumably DRYS pps will move accordingly. Consider this:
ORIG = $713 mil
TNKS = $645 mil (80% value of TNKS estimated value of $813 mil)
DRYS ownership value in these 2 companies would be $1,358 mil or almost double its current pps. Add in the value of the remaining 39 dry ships and DRYS value is significantly higher still.
The last, and perhaps largest, factor for all drybulk shipping is the slow down in China. I believe this is specifically due to the crashing price in iron ore. With 97 million tons of higher priced ore stocks piled in China's ports, there is no incentive to import more before the current stocks are depleted. Also, steel mills are shut down for maintenance this time of the year and most everything slows to a crawl for the Spring Festival (Chinese New Year 2/18-2/24). None of this is a big surprise this time of year for dry shipping. What should be focused on is the estimate coming from China regarding iron ore imports for 2015. They expect to import 1 billion tons of iron ore this year. With less than 28 million tons imported in January and probably a similar or possibly even smaller numbers this month, there is a lot of catch up to do during the next 10 months.
March should be a very exciting month for shipping and DRYS especially so.
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