I appreciate the points you make however I don't agree on a number of things tho.
Firstly players like Gulfmark are actually doing very well in managing the downturn. They understand how long it is likely to take to return to normal market position and doing a good job of staying afloat.
Additionally I don't agree that oil price is the a source leading indicator here. OK in a way it is of course but not in the way I think you think it is.
A real issue in this industry is the global vessel oversupply. About 35 percent of the global fleet is in stack.
The stacked boats mean that as soon as an operator can get a boat in a job that is cash flow positive vs stacking it then it will be tendered for work. This backlog needs to be worked off and it's only at a certain point of vessel supply and demand will an infliction point occur in the industry.
In the meantime MRM is at best breaking even on cash after bank interest. And they have to now pay 3* payments of $45m each in calendar 2017. To me, something has to give...
MRM Price at posting:
27.0¢ Sentiment: None Disclosure: Held
