Imperial Petroleum Series A Preferred: Still Solid But Downgrading To 'Hold' After Recent Rally

seekingalpha05-14

Greece-based tanker and dry bulk vessel operator Imperial Petroleum commands a best-in-class balance sheet with plenty of cash and no debt.Last year, the company generated almost $80 million in cash ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2435518164?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/185097199/image_185097199.jpg","is_english":true,"pubTime":"2024-05-14 20:41","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2435518164","market":"sg","top_or_hot":-1,"title":"Imperial Petroleum Series A Preferred: Still Solid But Downgrading To 'Hold' After Recent Rally","media":"seekingalpha","content":"<div>\n<p>Greece-based tanker and dry bulk vessel operator Imperial Petroleum commands a best-in-class balance sheet with plenty of cash and no debt.Last year, the company generated almost $80 million in cash ...</p>\n\n<a href=\"https://seekingalpha.com/article/4693026-imperial-petroleum-preferred-still-solid-downgrading-after-rally\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Imperial Petroleum Series A Preferred: Still Solid But Downgrading To 'Hold' After Recent Rally</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nImperial Petroleum Series A Preferred: Still Solid But Downgrading To 'Hold' After Recent Rally\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-14 20:41 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4693026-imperial-petroleum-preferred-still-solid-downgrading-after-rally><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Greece-based tanker and dry bulk vessel operator Imperial Petroleum commands a best-in-class balance sheet with plenty of cash and no debt.Last year, the company generated almost $80 million in cash ...</p>\n\n<a href=\"https://seekingalpha.com/article/4693026-imperial-petroleum-preferred-still-solid-downgrading-after-rally\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GASS","symbol_name":"斯蒂加斯海运","start_time":0,"source_url":"https://seekingalpha.com/article/4693026-imperial-petroleum-preferred-still-solid-downgrading-after-rally","article_id":"2435518164","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/185097199/image_185097199.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2435518164","pubTimestamp":1715690496,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Greece-based tanker and dry bulk vessel operator Imperial Petroleum commands a best-in-class balance sheet with plenty of cash and no debt.Last year, the company generated almost $80 million in cash f","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"GASS":"斯蒂加斯海运","IMPP":"Imperial Petroleum Inc","BK4144":"石油与天然气的储存和运输","BK6522":"化石燃料股","IMO":"帝国石油","BK6027":"贸易公司与经销商","BK4201":"综合性石油与天然气企业","IMPPP":"Imperial Petroleum Inc"},"translate_title":"帝国石油A轮优先：仍然稳定，但在最近的反弹后降级为“持有”","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GASS":1,"IMO":1,"IMPP":1,"IMPPP":1,"QSD.SI":0.65},"content_text":"Greece-based tanker and dry bulk vessel operator Imperial Petroleum commands a best-in-class balance sheet with plenty of cash and no debt.Last year, the company generated almost $80 million in cash flow from operations and both the tanker and dry bulk shipping markets continue to exhibit strength.With the dividend covered multiple times by the company's strong cash flow, Imperial Petroleum's 8.75% Series A Cumulative Redeemable Perpetual Preferred Shares continue to look solid.However, the recent share price rally has resulted in the annualized yield now being roughly in line with several much larger players in the shipping space.Consequently, I am downgrading the company's 8.75% Series A Cumulative Redeemable Perpetual Preferred Shares from \"Buy\" to \"Hold\".   HeliRy Note: I have covered Imperial Petroleum Inc. (NASDAQ:IMPP)(NASDAQ:IMPPP) previously, so investors should view this as an update to my earlier articles on the company. From a corporate governance perspective, Greece-based tanker and drybulk vessel operator Imperial Petroleum looks pretty bad as the company has diluted original shareholders by almost 10,000% since its spin-off from former parent StealthGas (GASS) in late 2021. Imperial Petroleum remains controlled by CEO and Chairman Harry N. Vafias and has used the funds to significantly expand its fleet, with many of the vessels having been acquired from related parties well above prevailing market prices. That said, the company has started to reverse course last year with sizeable share and warrant repurchases and the CEO converting his dilution-protected Series C Preferred Stock into new common shares. As of today, the company owns eleven vessels with an estimated market value of more than $300 million:   Regulatory Filings According to press reports, Imperial Petroleum recently agreed to sell the Aframax tanker Gstaad Grace II for $41 million to Chinese buyers:   HellenicShippingNews.com The relentless dilution has resulted in a pristine balance sheet with $124 million in cash and short-term investments as of the end of last year and no debt:   Company Press Releases In 2023, the company generated almost $80 million in cash flow from operating activities, and both the tanker and dry bulk shipping markets continue to exhibit strength. With strong cash flows and a best-in-class balance sheet, Imperial Petroleum's 8.75% Series A Cumulative Redeemable Perpetual Preferred shares (IMPPP) are certainly worth a look for income-oriented investors. However, following the recent price appreciation, the annualized yield has decreased to approximately 9%.   Yahoo Finance While shares are listed on Nasdaq, the average daily trading volume remains below 3,000 shares with large bid/ask spreads. Please note that Imperial Petroleum has the option to redeem the preferred shares at any time at their liquidation preference of $25.00 per share, which would result in a small capital gain for investors and approximately $2.1 million in annual cash savings for the company. With annual dividend obligations covered multiple times by Imperial Petroleum's cash flows, the company's preferred shares continue to look solid. However, I wouldn't chase the shares following the recent rally as an annualized yield of 9% is roughly in line with yields offered by a number of much larger players in the shipping space:   Value Investor's Edge / Yahoo Finance Bottom Line Given the strength of the tanker and dry bulk shipping markets, Imperial Petroleum's 8.75% Series A Cumulative Redeemable Perpetual Preferred Shares continue to look solid, but with the annual yield now comparable to several larger players in the shipping industry, I wouldn't chase the shares aggressively anymore.  Consequently, I am downgrading Imperial Petroleum's 8.75% Series A Cumulative Redeemable Perpetual Preferred Shares from \"Buy\" to \"Hold\".","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2435518164"}