Diana Containerships Inc (NASDAQ:DCIX)

Stock Rises Despite Q3 Losses by Diana Containerships Inc (NASDAQ:DCIX)

Diana Containerships Inc (NASDAQ:DCIX)

Diana Containerships Inc (NASDAQ:DCIX) shares are up 81%, to $12, in pre-market trading after the shipping company reported a Q3 2017 loss of $8.7 million. On a per-share basis, the loss amounted to $128.67. DCIX shares, a favorite of day-traders, hit a low of $6.35 at 7:13 AM EST and a high of $9.50 at 7:56. Volume has been light to moderate.

Diana Containerships Inc (NASDAQ:DCIX)

The shipping company posted revenue of $6.7 million in the period. Greece-based Diana Containerships Inc (NASDAQ:DCIX) is a global shipping provider. The company’s containerships are employed primarily on time charters with leading liner companies carrying containerized cargo along worldwide shipping routes.

Diana Q3 Financials

Net income for the nine months ended September 30, 2017 amounted to $20.4 million, compared to a net loss of (-$140.6) million for the same period of 2016. The net income for the nine months ended September 30, 2017 reflected a gain from a debt write-off, arising from the settlement agreement with respect to the secured loan facility with the Royal Bank of Scotland plc. The specific gain, net of related expenses, amounted to $42.2 million.

The loss for the nine months ended September 30, 2016 reflected the result of impairment charges for seven of the company’s vessels. Time charter revenues, net of prepaid charter revenue amortization, for the nine months ended September 30, 2017, amounted to $16 million, compared to $27.7 million for the same period in 2016.

Diana Lawsuit

A number of law firms are pursuing class action lawsuits against Diana Containerships Inc (NASDAQ:DCIX). The complaints generally allege that the company made materially false and misleading statements regarding the company’s business, operational, and compliance policies.

Specifically, the company made false and/or misleading statements and/or failed to disclose that: (i) through his control of Diana, Symeon Palios caused Diana to sell its common shares and securities convertible into common shares to an entity named Kalani Investments Limited (“Kalani”) at a significant discount to market price and to file registration statements so that Kalani could resell these shares into the market; (ii) when Kalani’s sales of DCIX stock caused the price of Diana stock to drop, the company would reverse split the stock, causing a specific number of outstanding shares to be merged into a single share, thereby raising the price of Diana stock; (iii) then Diana would again sell securities to Kalani and the same pattern of transactions would ensue.

By October 3, 2017, as a result of defendants’ ongoing dilutive and manipulative conduct, the price of Diana common stock had declined to close at $0.47 per share on an unadjusted basis. At this share price, Diana had a market capitalization of less than one million dollars, despite having raised millions of dollars since January 2017.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $DCIX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Diana Containerships Inc. (NASDAQ:DCIX)

Diana Containerships Inc. (NASDAQ:DCIX) In Focus After Q2 Profit

Diana Containerships Inc. (NASDAQ:DCIX)

Shares of Diana Containerships Inc. (NASDAQ:DCIX) edged lower even as the shipping company reported a surprise second quarter profit $36.5 million compared to a net loss for the same period last year. The stock was down by 9.72% in Tuesday’s trading session to end the day at $0.46 a share.

Q2 Earnings

Tuesday’s sell-off added fuel to a downward trend that has pushed the stock to its all-time lows. The stock has underperformed the market over the past twelve months as it continues to trade on the lower end of $0.45-$0.83 a share trading range.   Investor sentiment has suffered on growing concerns about its debt burden.

Diana Containerships Inc. (NASDAQ:DCIX) is a Greek shipping company that operates containerships in addition to pursuing opportunities through acquisitions. The company had six Panamax containerships as of the end of last year.

The company’s Q2 net income included a gain from a debt write off on a settlement of a secured loan facility with the Royal Bank of Scotland. Net loss for the six months ended June 30, 2017, totaled (-$29.1) million compared to a net loss of (-$13.8) million for the corresponding period last year.

Time charter revenues in the quarter totaled $5.5 million, a decline from $8 million reported last year. Diana Containerships attributes the decline to reduced employment opportunities as well as lower time charter rates.

Time Charter Agreements

Separately, Diana Containerships Inc. (NASDAQ:DCIX) has entered into a time charter contract with Maersk Line A/S for its m/v Puelo Post-Panamax container vessel. The charter contract is for a minimum of eight months with a gross charter rate of $10,600 per day. Extension of the charter period beyond eight months will result in the charter rate increasing to $12,000 a day. The charter will commence on August 2, 2017.

Diana Containerships has also extended the present time charter contract with CMA CGM Marseille for one its m/v Centaurus Panamax container vessel.

“The employment of “Puelo”, as well as the employment extension of “Centaurus”, are anticipated to generate approximately $4.45 million of gross revenue for the minimum scheduled period of the time charters.,” Diana Containerships in a statement.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $DCIX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Diana Containerships Inc. (NASDAQ:DCIX)

Diana Containerships Inc. (NASDAQ:DCIX) Tanks After $85 Million Loan Repayment

Diana Containerships Inc. (NASDAQ:DCIX)

Diana Containerships Inc. (NASDAQ:DCIX) was down by 27.55% in Wednesday’s trading session after announcing it had paid $85 million in full as a final settlement of its $148 million secured loan facility with Royal Bank of Scotland Group PLC (NYSE:RBS). The shipping company financed the transaction with $35 million from an Addiewell Ltd loan, $40 million from Diana Shipping Inc. loan and $10 million from cash on hand.

Loan Repayment

The company has also refinanced a $42.6 million loan with Diana Shipping Inc. (NYSE:DSX). In return, the company inked a deal for a new secured loan to the tune of $82.6 million. The loan bears a 6% interest rate for the first 12 months but rises to 9% for the next 3 months and 12% for the remaining 3 months and matures in 18 months.

“In addition, the new loans will provide the company the flexibility to take advantage of the improving market conditions of the containership segment, as well as to use alternative ways to reduce the leverage on its balance sheet,” said CEO, Symeon Palios.

Diana Containerships Inc. (NASDAQ:DCIX) is a holding company that provides shipping transportation services across the globe. The Company’s fleet comprises of six Panama and six post-Panama containerships with a carrying capacity of 61,517 tons. The vessels are deployed on time charters with leading companies operating along worldwide shipping routes.

Last month the company reached an agreement for the sale of the 2002 built vessel Doukato for $6.15 million to an unaffiliated third party.

Reverse Stock Split

Separately, Diana Containerships Inc. (NASDAQ:DCIX) plans to carry out a reverse stock split of its common shares per value of $0.01 a share with a ratio of one-for-seven. The company expects the process to reduce outstanding shares from 14.4 million to approximately 2.1 million. Diana Containerships Inc. (NASDAQ:DCIX) does not plan to issue any fractional shares because of the split. Shareholders who wish to have fractional shares will receive cash payment at price equal to that fraction multiplied by the stock’s closing price on the last day before the reverse stock split comes into effect.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $DCIX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.