FSL Trust    Last:0.043   -

FSL Trust - Biz at Inflexion Point

hem2998,

11.5c breakout 11.8c to re-confirm breakout. Cheers

hem2998      ( Date: 27-Jan-2015 13:04) Posted: why 11.8? btw, when is the results due for 4th Q? thanks

 

why 11.8?

btw, when is the results due for 4th Q?

thanks

 

Luckyfortunecat,

I believe that many TA traders are waiting for 11.8c to start trading. It seems like price is heading that direction with steady expansion in volume. Huat Huat for early investors.

 

Just look at the number of oil tankers this company is leasing out:

http://www.firstshipleasetrust.com/lease_photo.html

With the Saudis not backing down from their oversupply of oil, this means BIG BIG BUSINESS for FSL!

Demand for FSL' s oil tankers is definitely going to be healthy. This, coupled with the very significant improvements achieved by the current management, reveals that there is not a doubt that this gem is a straight-through value buy.

Many thanks to think2profit  for highlighting this great counter. Took the opportunity to load up this morning! 

 

 

i dun understand this business but the chart does look promising.

may buy a bit.

thanks for the heads up!

 

Dingbat,

Read oil importing countries such as China use tankers for oil storage due to current cheap oil price.

http://www.seatrade-global.com/news/asia/china-strategic-storage-offshore-driving-tanker-rates-higher.html

 

 

 

" Unaudited cash and cash equivalents at 31 December 2014 were US$32.7 million, including the Security Deposit. This is up from US$20.1 million at 30 September 2014 due to improved operational revenues on redelivered vessels, income in relation to a legal settlement secured by FSLTM and some working capital movements. The increased cash balance and expected covenant compliance demonstrate that the Trust is in a much improved financial position."

Encouraging  news indeed. Thanks for posting this. It was once a very profitable coy, looks like the new management have been able to gradually turn things around.  8D

 


 

 

This would be a classical turnaround story. Day rates for its vessels are returning to the old days 2008-2010 period leading to improved asset valuation and LTV ratio....price may go back  to between 30-50c once it  can start to give div. good luck!

 

Let' s take a look at FSL' s  profit and free cash flow for last  2 qtrs:

2Q14

Net Profit $5.4m Free Cash Flow:$ 9.6m

3Q14

Net Profit $2.3m (less compared against 2Q due to impairment) Free Cash Flow: $14.2m

 

 

 

 

 

The best way to make good money from share market is to be able to recognise inflexion point in a business and buy into it while share price is still low.

Could you recognize that FSL is at inflexion point from the recent news announcement? It may  be about to start issuing handsome div again after such a long time.

 

FSL TRUST TO BE COMPLIANT WITH LOAN COVENANTS

Singapore, 6 January 2015 &ndash FSL Trust Management Pte. Ltd. (&ldquo FSLTM&rdquo ), as trusteemanager of First Ship Lease Trust (&ldquo FSL Trust&rdquo or the &ldquo Trust&rdquo ), announces today that it will be compliant with the terms of its original loan agreement dated 1 December 2011 following a covenant relaxation period of two and a half years.

FSL Trust has had confirmation from its lenders that the value-to-loan (&ldquo VTL&rdquo ) ratio at yearend 2014 is compliant with the terms of the original loan agreement, i.e. in excess of 125%, without taking into account the security deposit of US$10.0 million that FSL Trust placed in July 2012 (&ldquo Security Deposit&rdquo ). Subject to confirmed compliance with the trailing four quarters&rsquo debt service cover ratio (&ldquo DSCR&rdquo ), the security deposit will be released. DSCR is  forecast to be in excess of 1.2x at the end of 4QFY14, well over the 1.1x required for loan covenant compliance and the 1.15x hurdle for the release of the Security Deposit.

Unaudited cash and cash equivalents at 31 December 2014 were US$32.7 million, including the Security Deposit. This is up from US$20.1 million at 30 September 2014 due to improved operational revenues on redelivered vessels, income in relation to a legal settlement secured by FSLTM and some working capital movements. The increased cash balance and expected covenant compliance demonstrate that the Trust is in a much improved financial position.