Quote:
Originally Posted by Dean2
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.
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I couldn’t get a better analysis of this stock even if I called BNN market call or Max Money guy, lol! You are a one smart cookie dude!
I am thinking the same way for now, it’s in my watchlist. It has been going down in the last few days, just like the rest of the market. Never the less, an interesting company to keep an eye on.
Another company that I am watching now is a small bio company called Todos Medical, ticker TOMDF. ITS A PENNY STOCK so treat it like a roulette at the casino. They are developing a medication for Covid, similar to what Pfizer has but pfizer med is showing very poor performance as of now. These guys developing something different that is in phase 2 trials now, called Tollovir, an antiviral treatment. And also Tollovid- dietary supplement to support immune function against circulating coronaviruses.
If they get good results - the stock will explode! At $0.03 per share, I am throwing a $3000 into it and hope for a big win!