Dancing on the Grave

By Geoff Uttmark

It’s better being right than being scooped, even if the scoop is for the right reasons. “Scooper” in this instance is the NASDAQ, “scoopee”, partially at least, was the May issue of Marine Money, “Market Power”.

In part 2 of our article on the attractions of convertible bonds for shipping, we analyzed American Classic Voyages’ convertible cumulative subordinated preferred security. Title of the article, “Converts to Shipping …” makes it clear the story is the instrument, not the company. Yet our real-world analysis of a convert in action focused on AMCVP, around $25.30 per share when MM went to print, AMCV common at $10.10 per share. After running some numbers on AMCVP, our article did conclude with “keep the Dramamine handy, and a life jacket too.” That was before AMCV released Q1 earnings on 8 May, characterized by some as potentially “keel-breaking”.

This is only an excerpt of Dancing on the Grave

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