TBSI

[Rmagos]

TBS International Limited Announces the Acquisition of a Handymax Bulk Carrier


HAMILTON, BERMUDA, February 19 / MARKET WIRE/ --
     
  TBS International Limited (NASDAQ: TBSI) announced that it has entered into
an agreement to acquire the M.V. Athinoula, to be renamed M.V. Canarsie
Princess, a 1985 built, 42,842 dwt handymax bulk carrier. TBS has agreed to
acquire this vessel charter free for $30.3 million with expected delivery
within the second quarter of 2008.
     
Following this acquisition and the deliveries of the previously announced
vessels, TBS' fleet will be comprised of 43 vessels with an aggregate of
1,268,402 dwt, consisting of 23 tweendeckers and 20 handymax/ handysize bulk
carriers.
     
Joseph E. Royce, Chairman, Chief Executive Officer and President, stated: "We
are pleased to announce the acquisition of the M.V. Canarsie Princess, which
further expands our dry bulk fleet enabling us to benefit from the sector's
positive fundamentals. Our growth strategy focuses on bolstering the earning
capacity of the Company and enhancing our flexibility to better service our
customers."
     
About TBS International Limited
     
TBS is an ocean transportation services company that offers worldwide shipping
solutions through liner, parcel and bulk services, and vessel chartering. TBS
has developed its business around key trade routes between Latin America and
China, Japan and South Korea, as well as select ports in North America, Africa,
the Caribbean and the Mediterranean. TBS provides frequent regularly scheduled
voyages in its network, as well as cargo scheduling, loading and discharge for
its customers.
     
Forward-Looking Statements
     
This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. You are hereby cautioned
that these statements may be affected by certain factors, among others, set
forth below and in TBS's filings with the Securities and Exchange Commission,
and consequently, actual operations and results may differ materially from the
results discussed in the forward-looking statements. Among the factors that
could cause actual results to differ materially from those indicated by
forward-looking statements is the ability of the buyer and seller of the vessel
to satisfy customary conditions to our obligation to purchase the vessel. Other
factors that could affect TBS's operations and results are discussed in TBS's
filings with the Securities and Exchange Commission. TBS undertakes no
obligation to update any forward-looking statements, whether as a result of new
information, future events, or otherwise.
     
Visit our website at www.tbsship.com
     
For more information, please contact:
Ferdinand V. Lepere
Executive Vice President and Chief Financial Officer
TBS International Limited
Tel. 914-961-1000
[email protected]
       
Investor Relations / Media:
Nicolas Bornozis
Capital Link, Inc. New York
Tel. 212-661-7566
E-mail: [email protected]

[David Randolph]

Thanks for posting the news Rmagos

• TBS International Limited Announces the Acquisition of a Handymax Bulk Carrier
Marketwire (Tue 9:00am)

Using the same methodology I've used in the past, if 42,842 dwt of ship are worth $30.3 M, 1,268,402 dwt is worth about $900 M.

TBSI's current market is worth $1 B, so it's like everything else besides the ships is worth just $100 M (if we consider today's open, it's more like $0).

I think this is unfair and TBSI's earnings power (and earnings growth) should allow for a much higher valuation.

I think TBSI will be over $100 when 2008 closes and I'll keep holding it.

[soxguy]

   An Indicator Bulls Will Love: The Baltic Dry Index

Recession warnings are everywhere. But some economic barometers are singing from a different choir book.


Oil, copper, wheat and other raw-material prices are soaring. Other gauges of global industrial demand also are flashing green: The Baltic Dry Index, which measures the cost of shipping dry commodities such as coal, has surged nearly 25% since the end of January.

The Dow Jones Transportation Average, historically an indicator of industrial shipping activity, has gained 2.5% this year, even as the Dow industrials have fallen 7.4%.

Investors may be betting that monetary and fiscal stimulus will spark a recovery in the second half of the year, or that worrywarts are overstating things.

Some investors also are turning for an explanation to the well-worn "decoupling" theory, which holds that foreign economies, particularly emerging markets, are robust enough to shrug off a U.S. recession, keeping global manufacturing and commodity demand healthy.

Still, bears can find reason to dismiss these economic crosscurrents.

Epic snowstorms in China early this year brought some of the country's industrial activity to a halt, denting global demand for commodity shipments and sinking the Baltic Dry Index. As China digs out, shipping demand is rising again. Temporary closures of iron-ore ports in Brazil and power problems in southern Africa contributed to the shipping swoon that is being unwound.

"The Baltic Dry Index doesn't have to be a big fundamental macroeconomic indicator," said Bart Melek, BMO Nesbitt Burns senior economist. "Sometimes it's moved by little, nitty-gritty stuff."

Meanwhile, some of these indicators might simply be giving investors head fakes. The Baltic Dry's bounce is dwarfed by its 49% plunge earlier. Commodities have drawn many speculators, and also investors seeking a hedge against inflation. If the economic bears are right, this long-running cycle of commodity price pressure will soon enough ease, as a weaker U.S. economy asserts itself.

--Mark Gongloff

• Comments to [email protected] or mark.gongloff@wsj

[jrtabor]

Good news for TBSI as all 40 of its vessels are the Handymax size.  March should be an exceptionally good month.

Handymax rates to rocket in March as cargoes build
Jamie Dale - Friday 22 February 2008

ATLANTIC handymax freight rates are likely to "really rocket" for March loading dates as the prompt ships are almost cleared out, writes Jamie Dale.

The Atlantic market saw healthy volumes of ships available for February cargoes in the last two weeks but many are now employed, opening the door to a firmer looking March.

"The prompt ships are looking softer, I think that you will see a clear out of these at lower levels," a London broker told Lloyd's List.

"Then I think you will see March ships looking like they will pick up some bigger levels."

The broker added that availability of cargoes to soak up the vessels will not be a problem.

"There are plenty of cargoes for US Gulf to Japan, plus there is looking likea real build-up of scrap on the US east coast to Turkey for mid-March," the broker said.

"In east coast South America and Brazil there is plenty of iron ore, pig iron and grain, so I think you will see [levels for] the March dates really rocket."

The broker noted that the last "biggie" fixed in east coast South America went for $56,500 per day plus $800,000 ballast bonus for a trip toward the Pacific.

However, the broker added that owners in east coast South America are already claiming to see interest at $70,000 per day plus $1m ballast bonus.

In west Africa rates for a Baltic Exchange tess 52 index type vessel are around the $61,000 per day mark.

"I think you will have to watch thismarket next week, this is when you will really see it go because the February ships in west Africa have almost cleared out with just a few knocking about on the Continent, but once they have gone we will see rates go up," said the London broker.

"Do not expect too much action on the indices this week, but watch next week and March dates. Be prepared!"

In the Pacific Basin this week many owners appear to have got carried away with the rapidly-rising short period rates and "have priced themselves out of the market", according to ICAP Hyde.

"Index type tonnage rating in the mid-low $60,000s has scared off charterers who are quite happy to sit back and watch for the time being unless they have spot backhaul requirements to cover with short period tonnage," added the Londonbrokerage in its daily report.

The report noted that some Far Eastern owners have started to ease their levels slightly after realising that their "over zealous" rates are off the mark in view of the reduced period sentiment.

ICAP Hyde noted that vessels fixed for Pacific round voyages are able to achieve above $50,000 per day, for both shorter nickel ore trips and the longer rounds out of the North Pacific.

The Indian coasts remain firm with a 45,000 dwt vessel open on the west coast reported to be fixing on subjects for a trip to the east in the mid $50,000s.

[Se7en]

TBS International Ltd Earnings Conference Call (Q4 2007)
Scheduled to start Thu, Mar 13, 2008, 10:00 am Eastern

http://biz.yahoo.com/cc/8/89978.html

[David Randolph]

Thanks for the valuable information you've been posting in TBSI's thread

Despite Friday's sell off, TBSI's trend is now bullish, with higher highs and higher lows. I don't think it will take much longer for us to have the stock around $50 and I expect it to close 2008 around $100 a share, with fundamentals improving throughout the year and expanding valuations.

[David Randolph]

Unfortunately TBSI is one of the stocks I choose to let go in the current market environment. Not just because I was forced to change my views of the general market trend and outlook, but also because I heard something quite puzzling about what's been happening in China lately.

Of course, the freight rates are up sharply from a few years ago because of China's every growing appetite for commodities, like iron ore, for example.

What I heard (or read) was that China has been building the equivalent of Japan's entire infrastructure (I mean, everything build in Japan) every three years. For how long can this go on?

If the US economy enters a recession (which seems to be the most likely scenario) and China suffers somewhat because of that (also due to rising interest rates due to inflation), building in China may very well slow down dramatically. If this happens the freight rates will also go lower and TBSI's profits will shrink to a fraction of what they are now.

The stock is trading at just 7 times earnings due to something, I've just been refusing to consider the pessimistic's perspective.

Well, not anymore, I just caved in.

The trading plan for TBSI is SELL.

[Se7en]

Is anyone still holding this, earnings after the close!

[buddjas1]

I'm holding for the long term.

[Se7en]

I re-bought today, hoping for some good earnings like some other dry shipping stocks had!

[buddjas1]

A clean (no extraordaries) $1.26 EPS for Q407.   

http://biz.yahoo.com/iw/080312/0374145.html

Beating the one analyst's estimate by $0.22.

$34.00 and rising after hours.

[soxguy]

I bought today also @$32. Glad I did now.

[Se7en]

A clean (no extraordaries) $1.26 EPS for Q407.   

http://biz.yahoo.com/iw/080312/0374145.html

Beating the one analyst's estimate by $0.22.

$34.00 and rising after hours.

After that meeting of all the 'dry shipping CEO's' where they stated that things were going very well and the future looked good for their sector + the fact that the BDI was at an all time high in the 4rd qtr, I was fairly confident about their earnings.


from yahoo:
Assuming (incorrectly) that they earn $1.26 for the next 3 quarters with NO growth....

That's $5.04 in earnings for the next year including the just reported quarter. That's a P/E ratio of 6.8!!!!! (34 / 5.04).

Now plug growth in, and you have a P/E well BELOW 5!!! Earnings grew at 79% this quarter! What's that put the PEG ratio at???

[Kublakhan]

It's a tough market to be able to hold onto gains, even with good news. 

[AussieTrader]

We shall see what the market wishes to say about it. I bought March $40 calls before the close as a way of potentially profiting on good news movement whilst limiting my risk relative to normal equity position size / max loss.

May look to add an equity position if it breaks the $35 zone with any volume / conviction.