Wednesday 16 December 2015

Maybulk: large paperlosses on its investment in POSH (4)

I wrote before:

  • POSH should write down its intangibles, which will decrease its book value
  • Maybulk should impair it's investment in POSH, it should have marked to market it's investment.

There are some indications that the above might (finally) happen, at least to some degree.

From POSH's latest announcement:



From Maybulk's latest quarterly announcement:




That will not give any consolation to current shareholders in any of these two companies, especially since the normal operations of both companies will be rather bad, due to the current economic environment in both the shipping and oil & gas industry. For the shareholders it will be a case of "when it rains, it pours".

But after the impairments the balance sheet of both companies will give at least a somewhat more realistic picture, something that was overdue for quite some time.

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