Mercator Lines - Worth another look now - 10% yield

edifice but if you are curious to know  , out of 14 vessels own by Mercator , there are only 2 vessels build/bought in the year 2007 , which i believe may be the peak of shipping boom last time
 
many of their other ships are build/ bought in 1993 , 1994 ,1997 , 2000, 2001 , 2005 so on ....
So those ships were much cheaper then , so based on accounting their fair valuation should be adjusted higher ?
End of the day , it squares off . The NAV stands corrected

Is the NAV calculated by the value of the ship bought at the time of purchase with depreciation taken into account at the present accounting period, or is it the immediate liquidated value at the present accounting period? Not too familiar with shipping companies sry

"many of their other ships are build/ bought in 1993 , 1994 ,1997 , 2000, 2001 , 2005 so on .... So those ships were much cheaper then , so based on accounting their fair valuation should be adjusted higher ? End of the day , it squares off . The NAV stands corrected" Ok never mind, posted my question about NAV before ZEN posted this

I started analyzing Mercator few years ago and one thing I like it for sure is its transparency. You can see in their result presentation slides about its fleet profile and book value of each vessel (wow! that is transparency I'm talking about!)
But don't know why since last year it never mentioned about book values of each vessel.
Let me share with you presentation slide from early 2011. Notice the book values of how many old vessels higher than a big and new vessel. Those I consider bad buying decision.
[img]images/stories/Mercator/Mercator.jpg[/img]

edifice i believe you didn;t get your facts right and very confuse
one minute you seem to claim that mercator had bought many new ships at recent high peak price . and next min , you seem to claim the older one cost more etc ... hahaha
Anyway , we all know Mercator had never did ever bought a ship at a high price before ; not like many jokers here who thought so
New or old , the average cost of the ships are pretty much the same at on average $50m ..
Some ship they can get at $36m , some can get at about $50m or slightly over ...with the geared vessel costing slightly more than a gearless ones
So i think of you are missing out on a gem at this undervalued price .
i am accumulating . You are missing out on a next big thing .
I am not buying Mercator at IPO price of 76cents but just at a mere fraction price of it now
Even big investment bank like Deutsche Bank can valued and priced the IPO at 76cents then
 
There is nothing to lose at this cheap valuation

edifice let me put it in another perspective for you to see ...
Just look at recent news about DYNASTY REIT IPO being pulled the plug last minute , citing poor sentiments and poor market conditions
If Mercator didn't took the chance to list at 2007 peak , which it managed to list at 76 cents for let's say 200 million shares ( FYI , Mercator post listing - the market cap was almost $1 billion - pretty big company value i would say )
If Mercator is to list now , you think it can still command such a high IPO price ?
Likely , Duetsche bank would finally price it at maybe at half the price only at 38 cents .
Do you think they are still able to raise the targetted $237.5 million now ????
Either they pull out of the IPO , or have to increase they number of IPO float/shares to twice the amount
So instead of 200m , increase to 400m
And the NAV itself will drop substantailly ( eg 20c ) due to higher number of outstanding shares
Without those money , Mercator would never have the chance to increase their fleet size to 14 now
So don't be misleaded by simple analysis by some people .
It takes more analysis to just look at ship price , and which i already pointed out - all their ship prices are almost the same if you average it out
I am very glad to be able to buy Mercator at this cheap valuation compared to IPO price of 76cents