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TRMD - Torm


claphands22
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Torm is a Danish dry bulk and refined oil shipping company.

 

I know very little about this industry or the executives, and it's just something I keep on looking at but not sure where to start digging.

 

Things I do know (and it's very little):

- had a management shake up in 2010.

- their freight rates are at quartile lows

- The new CEO purchased 100,000 at much higher prices than currently available.

- it's a 100 year old company (doesn't really mean much, but sometimes old companies have old assets laying around, but since they use IFRS accounting, which I know very little of, other than it's reliance on fair value accounting - I wonder how important the age of the company is )

- no loan to value covenant

 

What keeps me interested in Torm is an tangible equity of 865.9 and a market cap of 46.6M

 

There should be dilution risk here, but I am not sure to what amount. I am also not sure of how bad of a situation the are in with their lenders, but I know it's bad enough to be talking to their banks for a reprieve of certain upcoming payments (http://www.reuters.com/article/2011/12/05/torm-banks-idUSWEA426320111205)

 

--

Anyways, sorry for the crappy post. I am kind of shooting in the dark here. I am not sure if this is something really interesting or am I sniffing at dynamite.

 

Anyone have any thoughts on Torm?

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Torm is a Danish dry bulk and refined oil shipping company.

 

I know very little about this industry or the executives, and it's just something I keep on looking at but not sure where to start digging.

 

Things I do know (and it's very little):

- had a management shake up in 2010.

- their freight rates are at quartile lows

- The new CEO purchased 100,000 at much higher prices than currently available.

- it's a 100 year old company (doesn't really mean much, but sometimes old companies have old assets laying around, but since they use IFRS accounting, which I know very little of, other than it's reliance on fair value accounting - I wonder how important the age of the company is )

- no loan to value covenant

 

What keeps me interested in Torm is an tangible equity of 865.9 and a market cap of 46.6M

 

There should be dilution risk here, but I am not sure to what amount. I am also not sure of how bad of a situation the are in with their lenders, but I know it's bad enough to be talking to their banks for a reprieve of certain upcoming payments (http://www.reuters.com/article/2011/12/05/torm-banks-idUSWEA426320111205)

 

--

Anyways, sorry for the crappy post. I am kind of shooting in the dark here. I am not sure if this is something really interesting or am I sniffing at dynamite.

 

Anyone have any thoughts on Torm?

 

Claphands, I like your idea. It is original. Thanks for bringing to, at least me. I will take a look at it. I will post my findings if there is any.

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