Author Topic: TRMD - Torm  (Read 2097 times)

claphands22

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TRMD - Torm
« on: December 20, 2011, 02:51:26 AM »
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?
« Last Edit: December 20, 2011, 08:15:45 AM by claphands22 »


Baoxiaodao

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Re: TRMD - Torm
« Reply #1 on: December 22, 2011, 12:14:04 PM »
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.