Smilin_B
1 week ago
Analyst Tate Sullivan of Maxim Group maintained a Buy rating on Imperial Petroleum, Inc. (IMPP โ Research Report), retaining the price target of $8.00.
Tate Sullivan has given his Buy rating due to a combination of factors involving Imperial Petroleum, Inc.โs strategic acquisition and favorable market dynamics. The analyst has raised estimates following the companyโs announcement of acquiring seven dry bulk ships, which aligns closely with its cash and equivalents balance, signifying a strong liquidity position. Furthermore, Imperial Petroleumโs advantageous payment terms for the ships and the anticipated interest income prior to payment underscore the companyโs financial prudence. Sullivan also acknowledges the companyโs robust cash flow projections and absence of debt, reducing the likelihood of requiring additional capital.
Additionally, Tate Sullivanโs optimism is reflected in the increased revenue and earnings per share (EPS) forecasts for 2025, suggesting substantial year-over-year growth. This is despite a conservative adjustment in time charter equivalent (TCE) rates for some vessels. The analyst also factors in the broader market outlook, including global economic growth projections and sector-specific trends that could boost tanker rates, as well as limited supply growth due to the extended lead time for new ship deliveries. These combined elements contribute to Sullivanโs conviction in maintaining a Buy rating and an $8.00 price target, representing significant upside from the current trading level based on the forecasted book value per share.
Smilin_B
4 weeks ago
I have to say, the chart is certainly shaping up for a breakout through the $4.50 resistance area
Imperial Petroleum, with nearly $190,000,000 in cash and a NAV north of $15 a share, it's just stupidly undervalued here. Clearly institutions must have this on their radar screen.
Volume increase will tell the tale..
tigerpac
1 month ago
Itโs an easy question to answer. Harry doesnโt want anybody asking him about the details of the intercompany transactions. All the ships are originally purchased by Harry thru his affiliated companies and the them sold to either IMPP, CISS , or GASS. For each transaction Harry and family are getting a transaction fee, some of which is disclosed and some that we just are not sure of.
Why the need for Harry to skim some fees off each sale? Dont know but most of the Greek shippers do it. The less questions that can be asked mean the less questions that HAVE to be answered. He doesnโt want an analyst demanding him to pay a higher dividend or buy back shares. Harry knows how to play the game. The stock is used as currency to raise capital. He is more likely to pay a higher dividend on the preferred shares since that is the class he owns.
Remember he is not selling ships to unaffiliated parties, he is selling them to himself (as controlling shareholder of the buyer).
CISS is the big loser in all this, until he creates another company that C3 will sell ships to.
My guess is that most of the short position is owed by hedge funds who have lent Harry money in the past thru debt financing to purchase ships. If you want burn those guys and squeeze them he easily can but then needs to find a new group of funds when money becomes tight again due to changing market conditions.
Harry needs all the cash in reserve that he has accumulated in order to purchase more ships. Once the fleet gets to be double the current size and all else remains the same then perhaps the share price begins to trend towards the double digits.
Think one should accumulate shares on dips and hold for several years. A crash in spot market prices for
a period beyond a few months is one the only things that can upset the revenue side for IMPP (except for a ship seizure or ship sinking).
Smilin_B
1 month ago
Imperial Petroleum: Good Quarter, Pristine Balance Sheet, Discounted Valuation - Buy
Aug. 27, 2024 9:05 PM ET
Summary
On Tuesday, Imperial Petroleum reported decent Q2/2024 results with stable fleet utilization and consistent cash generation.
The company ended the quarter with $129.8 million in cash and liquid investments. Imperial Petroleum continues to have no debt.
Assuming full exercise of the company's remaining Class E Warrants, diluted net asset value per share calculates to $12.45.
At current share prices, Imperial Petroleum is trading at a 35% discount to its stated cash balances, with market participants not assigning any value to the company's fleet.