Homepage
PR Newswire
24-11-2010, 06:18 PM
Thanks d.o.g for sharing the wealth of knowledge. I learned a quite deal from your exchange with Nick. I am vested in Mercator Lines and are impressed in the Management team and how the business are managed. They had just received award from ICIC bank as top Indian company. Recently, the share price declined substantially and I am considering whether to add more capital on it.
However, I just would like to know whether are they are hidden risks that I might not be able to detect at my current level of investment competence. The ROE declined to 10% last year and would probably be maintaining at this level for this year given that there will no surprises in shipping rates. Given the latest additions and expansion to the fleet, I expect recurring income will rise slightly but potential catalyst is when the shipping industry upturns, it will be able to dispose the ships for a handsome profit. Their dividend are quite stable and there is strong emphasis by the Management for strong balance sheets
However, I just would like to know whether are they are hidden risks that I might not be able to detect at my current level of investment competence. The ROE declined to 10% last year and would probably be maintaining at this level for this year given that there will no surprises in shipping rates. Given the latest additions and expansion to the fleet, I expect recurring income will rise slightly but potential catalyst is when the shipping industry upturns, it will be able to dispose the ships for a handsome profit. Their dividend are quite stable and there is strong emphasis by the Management for strong balance sheets