Question-and-Answer Session
Operator
Thank you sir. Ladies and gentlemen, we will now begin the question-and-answer session. (Operator Instructions) Our first question comes from Robert Spivy with Abernathy Group. Please go ahead.
Robert Spivy - Abernathy Group
Hi Mike and Chris, how are you guys doing?
Michael Batten
Hi Rob. How are you?
Robert Spivy - Abernathy Group
Doing alright. Just to wanted to get an idea of well, first what you guys consider to be your proper capital structure, your target capital structure?
Michael Batten
Well, I think we are pretty much at where we are right now and on an operating basis 30%, 31%, low 30’s of total capitalization is a comfortable area for us to be in. Now that does not mean that we cannot go out and look at acquisitions which is what we are doing and as a result of making an acquisition go above the 30, what we are looking at is keeping enough of our powder dry, so that can we make those kinds of acquisitions.
Robert Spivy - Abernathy Group
With that I suppose I can ask you on any color on which segment of your division do you want to make an acquisition in?
Michael Batten
Well, we are looking at all of the areas, we are not targeting one particular one or another. We are active in marine as well as land based opportunities.
Robert Spivy - Abernathy Group
And I just -- one last question; can you give some color on what part of your lien businesses were doing -- you thought were the strongest and the weakest in the last quarter and how you project those to go, going forward?
Michael Batten
Sure, the strongest part of our marine business is a combination of our commercial marine sales into the oil and gas markets around the world that would be driven by demands from the US Gulf coast as well as the Pacific Basin, so our sales in those areas have going extremely well and continued to do well in the forecast is for that to remain at high levels that we are seeing. The other part of the marine demand is coming from the European mega yacht market; particularly in lead but not necessarily, exclusively there and we see that demand for mega yachts has continued to grow and will remain at high levels for this foreseeable future.
Robert Spivy - Abernathy Group
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