As many may know I have become very bearish on the prospects for...

As many may know I have become very bearish on the prospects for MRM recently as I've uncovered further industry data.

I believe that MRM's holders need to be braced for a very large hit soon.

I've thus sold the majority of my holdings and invested in oil producers stock that are direct beneficiaries of the improving oil outlook.

I think MRM actual company performance will significantly lag the oil recovery and there still remains significant potential (and significant likely hood) of bad news to come yet.

We have not heard from MRM for a while but from what we can see from similar industry companies (US Companies with more frequent reporting frequencies) its very bad news.

An asset impairment of the boats, and significant one, must be near certain.  This will reduce the NTA of the company by a fair bit I'd think... and that is a comforting reason for many MRM shareholders that won't be able to be relied upon soon I think..

Happy to be challenged on anything but my observations summarised are:

- Industry utilsation rates are shot.
- We could be looking at an MRM boat utilisation rate in the 30% range.
- Last time the impairment happened utilisation MRM utilisation was ~70% (at 30/6/15).
- At 30/6/15 GulfMark Offshore's utilisation rate was 69%
- At 30/3/16 Gulfmark's utilisation rate was 38%
- High % of vessels are stacked

- Day rates are shot:
- At 30/6/15 Gulfmark's day rate averaged $16,428
- Day rates are well down. Gulfmark Offshore's $12,982

My feeling is that the pain at MRM is going to get a lot worse before it gets better.

Even while improve in the oil price is now underway, that may not mean good things for MRM for some time, as not unlike the commodity of oil, there is a significant oversupply of boats.

The over supply of boats needs to be worked out of the system and that will take some time as I'm sure competitor companies will bring boats out of storage as soon as break even jobs arise.  There are heaps of boats in storage!

See below links for further details:
http://www.gulfmark.com/news-releases.html