Friday, July 16, 2021
Euroseas Ltd. (ESEA)
Preferred Shares Converted and New Build Capex Update
Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Strong stock price performance triggers conversion of preferred shares into common shares. ESEA recently notified Blackrock that it intended to issue a notice of redemption no earlier than July 9, 2021, and Blackrock converted the preferred shares into common shares at $14.05/share in June, as Preferred Friends Investment had earlier on June 15th. A total of 453k common shares were issued and the current share count is ~7.24 million shares.
Updated timing of new builds. Contracts signed for two Eco design fuel efficient 2,800 TEU containerships to be built at Hyundai Mipo Dockyard Co. in Korea at a total cost of ~$76 million. We estimate that a 10% deposit of $7.6 million will be paid in 3Q2021, with payments of $3.8 million in 2Q2022, $7.6 million in 3Q2022, $7.6 million in 4Q2022, $3.8 million in 1Q2023. Payments upon delivery of …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
