I loved reading this "When you see a merger agreement with such round numbers as in this one 65/35, as opposed to 62.7/37.3 or 66.4/33.6 etc., it’s clear that the principals made a handshake agreement for the merger without getting too bogged down in the spreadsheets." this is the world that I have lived my life in.
Great writeup. Can you expand on HAUTO that they contract cargo volume and not rates? I thought that when they make a contract they stipulate volumes AND rates for those volumes.
Ok, that's also what I thought. So, if these contracts hold, we should get the investment back via dividends in the next 3 years. I'm still scared of the orderbook, which could imply price wars once these vessels are delivered, because there won't be enough cargo for all of them.
I loved reading this "When you see a merger agreement with such round numbers as in this one 65/35, as opposed to 62.7/37.3 or 66.4/33.6 etc., it’s clear that the principals made a handshake agreement for the merger without getting too bogged down in the spreadsheets." this is the world that I have lived my life in.
Great writeup. Can you expand on HAUTO that they contract cargo volume and not rates? I thought that when they make a contract they stipulate volumes AND rates for those volumes.
They contract the rate of the cargo, not the day. So using tge Suez canal would increaese profits, nit decrease them.
Ok, that's also what I thought. So, if these contracts hold, we should get the investment back via dividends in the next 3 years. I'm still scared of the orderbook, which could imply price wars once these vessels are delivered, because there won't be enough cargo for all of them.