Activist Investor believes StealthGas shares worth as much as $14.00, but depressed due to ineffective management
Mequon, WI, January 16, 2018 // Activist investor Global Value Investment Corp. (GVIC) has sent an open letter to the StealthGas Inc. (NasdaqGS: GASS) Board of Directors pressing for reforms in order to improve the persistent underperformance of the company’s common stock and provide a cash return to shareholders.
Read: Open Letter to the Board of Directors
Presentation: Investor’s Case for Change
GVIC urged the board to immediately initiate a cash dividend, hire a permanent Chief Financial Officer (CFO), retain an independent investor relations firm, and establish criteria to hold the current entrenched management team and Board of Directors accountable for the company’s poor performance.
“GASS trades for approximately 25% of book value,” according to GVIC analyst Mr. Samuel Schaefer. “This management team has failed to create value for shareholders with the company’s net worth actually declining over the past five years.” GVIC has invested in the company’s common stock for its clients since 2007.
Schaefer believes GASS should trade for close to its book value per share of about $14.00. Shares recently traded for $4.50.
GVIC President and CEO, Mr. Jeffrey Geygan, stated that his firm will take whatever steps are necessary to ensure that the interests of shareholders are served. “We have patiently communicated with the company for several years with little noticeable change.” Geygan believes that most investors share his frustration and support GVIC’s recommended changes. He indicated there are numerous options available to GVIC, up to and including a proxy contest to replace current directors.
GVIC has published an investor presentation detailing its case for change on the company. This presentation, along with the firm’s open letter the StealthGas Inc.’s Board of Directors, may be accessed by visiting GVIC’s website.
About Global Value Investment Corp.
Global Value Investment Corp. is a value-oriented investment research and advisory firm focused on investing in the equity and debt of publicly traded companies around the world. The firm identifies under-valued investments and concentrates on closing the valuation gap.
GVIC was founded in 2007 in Mequon, WI. The firm has additional offices in Boston, MA, Charleston, SC and Hyderabad, India.
About StealthGas Inc.
StealthGas Inc. is a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry. The company is one of the largest owners of pressurized LPG carriers in the 3,000 – 8,000 cbm costal carrier segment. The Company’s fleet includes 48 LPG carriers, three M.R. product tankers and one Aframax oil tanker. The company has been publicly listed on the NASDAQ stock exchange since 2005, and is headquartered in Kifisia, Greece.
For Further Information Contact:
Ms. Stacy Wilke
Global Value Investment Corp.