Quote:
Originally Posted by Map Maker
I did a scan as well and did a book value calc.
I can’t find anything hugely out of whack.
I decided on a buy-in price and put in a buy order. Quite a bit lower than its recent price but I would be comfortable buying if it hits it.
Play money of course.
Curious if you saw anything.
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The big attraction to this stock is the oversized dividends they have been paying the last while as a result of the huge ramp up in shipping prices. Their costs have stayed relatively flat and shipping rates are 4 to eight times what they were pre-pandemic. They have reasonable debt to assets at 50%. That is in the normal range for this type of capital intensive business. All other ratios seem in line. Company has been around for 75 years and is one the larger shipping companies, operating 120 ships plus ancillary assets with a market cap over 6 billion. There asset base has grown a lot in the last few years from 3 billion to over 11 billion but 3.4 billion is cash on the balance sheet. They are carrying 3 billion in Capital leases from purchasing more ships.
Shipping rates have come off somewhat but are still way higher than previous. Even if the level out at double the old rates this company will still be flush with cash. Given their stated intent to payout at least 30% of profits in dividends the high dividends could continue for some time.
Current share value is elevated from historical levels and is likely to drop back closer to that range, so not one to buy into now nor have I done enough research yet to call this a good long term hold. I have added it to my watch lit stocks and I have it diarized to look at it again just before the next dividend Ex date, around Dec 14th, 2022.