Diana Containerships Inc (NASDAQ: DCIX) is climbing in the market today after the company announced an asset sale. Of course, the sale brings in a substantial amount of funding, which is exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The asset sale;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to DCIX ahead.
DCIX Announces Asset Sale
As mentioned above, Diana Containerships is having an incredibly strong day in the market today after the company announced that it has signed an agreement to sell a valuable asset. In a press release issued early this morning, the company announced that it has signed a Memorandum of Agreement through a wholly-owned subsidiary to sell a vessel to an unaffiliated third party. The vessel, known as Hamburg, was built in 2009 and is expected to be delivered to the buyer by no later than July 31, 2018. DCIX said that the gross price of the vessel before commissions came to $21.0 million.
In the release, the company said that net proceeds from the sale are expected to be used to pay some of the company’s current debts. Following the completion of the sale, the DCIX fleet will include 5 container vessels. These vessels include 3 Post-Panamax and 2 Panamax vessels.
What We’re Seeing From The Stock
With the news that Diana Containerships is selling off an asset with a price tag of $21 million, the financial position of the company will become a stronger one. Considering this, it makes sense that we’re seeing gains in the stock today as excited investors and traders get in on the frenzy. Currently (11:12), DCIX is trading at $1.75 per share after a gain of $0.20 per share (12.85%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on DCIX. In particular, we’re interested in following the company’s use of the funds that will be generated through the sale of the Hamburg vessel. We’ll also be following the company’s finances and operations closely. While things have been more positive as of late, historically, we’ve seen some seriously bad moves made when it comes to debt and financial structure. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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