1) CEO left. He made no secret his unhappiness and the board did not mince words in explaining the reasons of letting him go. Apparently, there is some coporate issue and conflict of interest. The Ex-CEO is accused of pursuing his own interest over the trust.
2) Profit guidance. The trust is expected to report loss due to impairment but still positive in generating cash flow.
U can read the announcements from the SGX. When I first read 2 announcements, I am rather tempted to re-enter the counter if the price is good. It is cash flow that determine payout although the impairment might cause stresses on its loan convenant.
However, I decided against it when I read this:
FSL do have 4500-5000 TEU containers chartered to YM and it's a big contributor to revenue.
While the news state 4500 TEU - 5000 TEU, I am not sure if FSL will be spared.
Yang ming is the biggest contributor. So I will leave it alone.
I will leave FSL behind and is going to leave Singpost behind me.
I wrote about Singpost (http://sillyinvestor.blogspot.sg/2017/01/singpost-2nd-catalyst-and-3rd-catalyst.html?m=1)
Scenario 3 happens. Top line is increasing fine but the bottom line is horrible. The main culprit if u read the presentation is the ballooning expenses in US companies.
The wound did not end there. To add salt to injury, one major customer of the US firm went bankrupt. That is already reduce business dealings with it before it bankrupt is not comfort to me. 1 thing is quite clear, this is a bad deal as there is going to be impairment going forward.
Given the new dividend policy of pegging payout to profits. U can kiss decent dividends good bye.
I am kissing it goodbye come Monday. I still like the company but no longer it's current price