Boston, MA 10/25/2013 (wallstreetpr) – Between 1997 and 2003 Ion G. Varouxakis was employed in an executive capacity by several private Greece Shipping entities. In 2003 he started his own dry bulk shipping service called Free Bulkers. The new company even though with a single vessel grew in demand and in 2004 he started the process of forming FreeSeas Inc (NASDAQ:FREE).
Currently the company is operating seven vessels but it is not as glossy as it was back in the day. In the last 12 months, the company’s shares have plunged downwards by 77.78%. The company has also had the worst share price as $0.17 per share. However, all is not lost for the company and the company might have hit the downside but has a very high upside potential. Several factors give analysts the hope that this company has the potential to get back up. The main ray of hope being the company’s very competent management and what is seen as undervaluing. Given the recent chain of events in the company like the recent assigning of the company’s $30 million debt in a deal with several companies including Deutsche Bank. This also saw the company’s two ships that had been put up for leverage completely unencumbered. After the formal signing, the company’s manager said that the move would see the company grow by an estimated $12 million.
Even though this only had a positive effect on the shares for just a while, it is enough to catch the investors’ eyes. Another Factor that might contribute to the company’s growth is because it operates on the spot market. As such the rates can increase depending on the season and demand. Because companies or clients are not obliged of guaranteed to renew their contracts, the company can re-charter their vessels at a favorable cost. This allows for maximization of revenue with every contract renewal.
