The ‘crappy’ companies vying for US investor dollars do not worry Gram Car Carriers (GCC) head Georg Whist.
On 22 June, the Oslo-based ro-ro owner listed on the OTCQX, a New York-based and US dollar-denominated over-the-counter stock market, in a bid to boost its profile with US investors — the same day Whist said there are a handful of “s**t companies” harming shipping’s reputation on Wall Street.
Whist told TradeWinds on Tuesday that the alleged low-quality shipowning outfits and GCC’s potential attractiveness to US investors are separate issues.
“We believe that US investors will find GCC attractive given the company is a part of the automotive logistic chain, an industry they know well,” he said.
“We believe that investors are clever and able to distinguish good companies from poor companies.”
Whist’s comments on the quality of some US-listed companies were made during a panel at Marine Money Week in New York.
The panel made headlines after a heated exchange between Maxim Group investment banker Larry Glassberg and Ridgebury Tankers finance chief Hew Crooks.
Crooks said Maxim’s controversial equity raise deals with certain Greek owners were damaging the entire market for shipping equities, singling out Nasdaq-traded Top Ships as losing nearly all its value even as tanker asset values skyrocket.
Glassberg declined to discuss Top Ships, but said there were a lack of committed shipping investors in the US.
Then Whist interjected: “The reason some companies are trading poorly is that they’re s**t companies. The industry is not doing itself a favour by listing a lot of s**t.”
On Tuesday, Whist said he was unconcerned that some US investors may look at shipping sceptically.
He said GCC has 40 years of experience in the sector, with strong governance and transparent reporting, long-term cashflow visibility and a quarterly dividend policy that returns 75% of net profits to shareholders.
He was also unfazed by the potential of being overlooked due to the over-the-counter listing, noting building relationships with new investors will take time and regular engagement.
The OTCQX is at the top of the three-tier over-the-counter exchange ladder, with the pink sheets and its cheaper, more speculative so-called penny stocks trade at the bottom.
But the OTCQX exchange is home to some large European companies, including Adidas, Zurich Insurance Group and Heineken.
Whist insisted the OTCQX move was not the precursor to an eventual jump to the New York Stock Exchange or Nasdaq.
“Currently, we are well positioned with our main market listing on Euronext Oslo Bors and having been admitted to trading on OTCQX,” he said.
“We will from time to time evaluate if this is the optimal structure to engage with investors and ensure that our shares are fairly priced, but a full listing in the US is not a priority at the moment.”
