Re-Rankings

Due to an unfortunate omission, which would have been nearly impossible for us to uncover, our 2006 Rankings of Shipping Companies as they appeared in our June/July 2007 issue were in error due to a single miscalculation.

Beginning in early May 2007, we began the process of collecting and inputting data into our rankings model. From each company’s annual report, there were multitudes of inputs to extract and then we sourced Bloomberg for historical foreign exchange rates and stock prices. This was done this year for 86 companies and, as you can imagine, presents quite a challenge.

In reviewing the rankings carefully during July, Precious Shipping’s Chief Financial Officer, Kushroo Wadia, questioned his company’s low standing in the price/book value calculation and therefore its overall ranking. In this parameter, Precious was ranked 75th out of 86. The error he uncovered was in fact in the calculation of the numerator or market capitalization. For our calculation of market capitalization done in May 2007, we used the December 31, 2006 share price from Bloomberg and the then outstanding shares as shown in the year-end balance sheet. According to Bloomberg, the share price was the equivalent of $0.70 at the time with outstanding shares totaling 520 thousand

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