NEWL – True Believers vs Profit Takers Cramer update

A) NEW YORK (TheStreet) — NewLead Holdings  (NEWL_) dropped off Thursday after shares of the shipping company had soared for three consecutive days.

The company announced on Monday it had received deliver of NewLead Albion, an eco-type handysize vessel with a capacity of 32,318 dwt. Shares promptly exploded 305.2% on Monday and continued to rise Tuesdya and Wednesday in the wake of the news. NewLead also said it expects NewLead Albion to generate $2 million EBITDA per year assuming $1.73 million yearly OPEX.

NewLead agreed to purchase two eco-type vessels in March and paid $18.5 million for Albion. The second vessel is scheduled for delivery in July.

END of update

B) from Jack a. Bass Managed Accounts:

NEWL shareholders saw a 50 for 1 share reverse split not work – as the shares – instead of being at $2.50 post reverse split plunged as low as 38 cents. a sharp rebound lifted the shares three days in a row . The Company needs to keep the selling price above  $ 1.00 to keep the NASDAQ listing.

The second requirement for NASDAQ is a minimal value of $ 50 Million – meaning at least a $ 5.00 valuation per share.There is a battle today to get to $4.00 ( which was 8 cents pre reverse split.

Long suffering shareholders were cheered with the recent run. Jack A. Bass Managed Account holders saw there accounts take on small positions post the reverse split and the shares were as much as triple digit gains per day.

The company is seeking to rebuild by adding new ships – and hoping for an upturn in shipping rates – the Baltic Dry Index is still only 10 % of its 2008 high.

Thursday a.m.  brought profit taking :

NEWLEAD HOLDINGS LTD(NEWL:NASDAQ, US)

3.85USDDecrease0.55(-12.50%)Volume: 
Above Average
As of 22 May 2014 at 10:30 AM EDT.


QUOTE DETAILS

Open 4.00 P/E Ratio (TTM)
Last Bid/Size 3.84 / 1 EPS (TTM) -56,034.36
Last Ask/Size 3.88 / 10 Next Earnings
Previous Close 4.40 Beta 2.30
Volume 5,676,078 Last Dividend
Average Volume 16,682,456 Dividend Yield 0.00%
Day High 4.29 Ex-Dividend Date
Day Low 3.66 Shares Outstanding 10.1M
52 Week High 8,235.00 # of Floating Shares 10.02893M
52 Week Low 0.3788 Short Interest as % of Float 0.53%
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