Description

IMPP spun off in May 2021 with 4 ships, the company has raised $140 million through 5 offerings. 

Great, so what did we get? We have a business with net tangible equity of $360 million with what we think later this year will exceed $140+ million in net cash with/ at least $40-50 million plus in earnings power. The valuation is currently $120 million.

IMPP has 3.8 million shares sold short. We think the company's cash balance should exceed its market cap. The borrow rate is -45%. Therefore, being short IMPP is effectively being short cash a pile of cash, and paying -45% for the privilege. 

A wave of liquidity is set to hit this shipping company over the next 90 days (sorry, couldn’t resist). We believe the market is pricing in 75% odds of more dilutive offerings, but we think that is more like a 25% probability for several factors…including our conversation with Harry. We think no dilutive offerings plus a large share repurchase/good results will lead to a $7-8 stock price later this year. We also think that the downside is well capped given the balance sheet. The catalyst is simply catalysts of cash piling up, strong results, and a new large share repurchase. 

For the current stock price of $3.30, IMPP has no debt and we estimate year-end net cash of $4.50 per share (post recent sale of vessel and payment from prior sale of the vessel), tangible book north of $12.00, and at least $1.00 in EPS’24.

• Current: IMPP has $1.00 in cash per share and ZERO debt
• By July: $1 per share in cash due to a fully funded receivable from CISS
• There was a media article earlier this week that IMPP sold a ship to a Chinese buyer for $42 million which would be another $1+ per share.

 https://www.tradewindsnews.com/tankers/vafias-aframax-sister-ships-sold-to-china-as-prices-hit-16-year-high/2-1-1631671

• 2024 estimate of another $1+ in operating cash flow

The business is simple, mainly oil/product tankers with 10 vessels post the recent April vessel sale.