Rickmers Maritime Trust

[Nick]

When a person trades on margin and gets a margin call, what will he do? If he is bearish on his position, he will cut loss and sell down (sell some ships?). If he is still bullish, he will meet the margin call with fresh funds (like this situation).

Is Mr Rickmers justified in being bullish? Only time will tell.....

Is Lee Hsien Yang's wife justified in being bullish and backing the rights issue?

I wouldn't read too much into this. She only has 450,000 shares in the Company and isn't under-writing anything.

RMT is currently trading at 33.0 cents - TERP will be 28.5 cents giving rise to a dividend yield of 10.5%. It would be wise to create a pro forma cash-flow statement to see whether the 2.4 cents DPU can be maintained going forward in light of the interest savings, reduced loan amortization and possibly lower charter income from next year onwards.