Santayana Posted February 23, 2012 Share Posted February 23, 2012 More of the same today. I was hoping to get a chance to buy some more under $15, but for now it looks like the train has left the station. Link to comment Share on other sites More sharing options...
Uccmal Posted February 23, 2012 Share Posted February 23, 2012 I cant figure this out. Searched the news and there seems to be nothing. Maybe it was added to an index in Asia or some such. Trimmed a tiny bit today - still a 10% position. Link to comment Share on other sites More sharing options...
Uccmal Posted February 23, 2012 Share Posted February 23, 2012 Only a value investor wants to know why his stock goes up in value.... Link to comment Share on other sites More sharing options...
Santayana Posted February 29, 2012 Share Posted February 29, 2012 2011 results are out and there's that dividend increase. http://ir.seaspancorp.com/releasedetail.cfm?ReleaseID=652954 Link to comment Share on other sites More sharing options...
gaf63 Posted March 10, 2012 Share Posted March 10, 2012 Heads up for US shareholders: doing my taxes and found out that SSW has restated their divs. as non div. distributions for income allocations. So the divs. are not qualified divs as in years before and the tax due will be at ordinary income rates in taxable accounts. Would think they would have contacted shareholders of this change. Hopefully I dont end up with an underpayment penalty. Scottrade is looking into this tax treatment and I have an email in to SSW inv. relations. Link to comment Share on other sites More sharing options...
JEast Posted March 10, 2012 Author Share Posted March 10, 2012 This year the dividend was treated as 100% return of capital for US shareholders which reduces your cost basis. This also implies that US recipients pay no taxes until the shares are sold, if a gain. http://seaspancorp.com/dividend-distributions.php Cheers JEast Link to comment Share on other sites More sharing options...
gaf63 Posted March 10, 2012 Share Posted March 10, 2012 Thanks for posting that info JEast, news to me. Did SSW provide any info, press release, as to this change of div. treatment? GAF Link to comment Share on other sites More sharing options...
gaf63 Posted March 10, 2012 Share Posted March 10, 2012 In looking at the div. info on SSW's site I see that there has been a return of capital in most years. Until 2011 all my SSW shares were held in IRA accounts so my brokerage never reported the divs as qualified or not, and I was unaware of the div. treatment. The IRS will get paid one way or the other tho, just delayed, G Link to comment Share on other sites More sharing options...
Santayana Posted May 18, 2012 Share Posted May 18, 2012 SSW dropped to $14.20 this morning. I wasn't able to move fast enough to load up at that price, but still added a bunch under $15. Anyone else still holding/following this? Link to comment Share on other sites More sharing options...
JEast Posted May 18, 2012 Author Share Posted May 18, 2012 The shareholder base in the shipping sector are quite strange. To paraphrase Buffett from this year's meeting, 'Shipping stockholders are psychotic drunks.' One minute SSW is up, then it is down though they have 10 year contracts that have not changed yesterday, today, or tomorrow. Not my favorite kind of stock, but take the opportunity when it is given. Load up below $14, sell at $20 then rinse and repeat :) Recent progress continues with the current earnings release. Plenty of capital to buy depressed assets in the next 6-12 months. Cheers JEast Disclosure: Long SSW Link to comment Share on other sites More sharing options...
Santayana Posted May 18, 2012 Share Posted May 18, 2012 LOL, love that quote from Buffett! Today's range has been $14.20-$15.96 on basically no news. Yes they reported yesterday, but nothing that should have surprised anyone. I sold some at $17.50 a couple of weeks ago, but felt I had to jump back in this morning. Link to comment Share on other sites More sharing options...
JEast Posted May 24, 2012 Author Share Posted May 24, 2012 For the folks that own shipping companies, found this article on the acceleration of tonnage being scrapped is progressing in 2012. Would not have predicted that, but the bunker costs are destroying inefficient ships and bodes well for larger and newer designs. http://www.cnshipping.com/en/home/shippingnews/25602.shtml Cheers JEast Link to comment Share on other sites More sharing options...
Packer16 Posted June 13, 2012 Share Posted June 13, 2012 An interesting article on the state of the container shipping market. http://www.economist.com/node/21556632 Packer Link to comment Share on other sites More sharing options...
Uccmal Posted November 1, 2012 Share Posted November 1, 2012 3 Q earnings are out. They retired a significant amount of common shares. Distributable cash is increasing steadily. No dividend increase this Q - I am guessing 20% increase next Q. Still trading with > 6% dividend yld. Boring. Link to comment Share on other sites More sharing options...
Uccmal Posted November 1, 2012 Share Posted November 1, 2012 http://ir.seaspancorp.com/releasedetail.cfm?ReleaseID=717330 Bv around 17. Link to comment Share on other sites More sharing options...
MYDemaray Posted November 1, 2012 Share Posted November 1, 2012 I have spent the past 5 years deeply enmeshed with the container space. Another container stock that I like, and have a sizeable position in, is Global Ship Lease (GSL). It has a somewhat complicated story, but leases its vessels on long-term charter like Seaspan. It has a single counterparty, CMA CGM, which is the third largest container liner in the world. CMA CGM owns 45% of GSL, and I believe, for many reasons which I can elaborate on, is a safe counterparty whose interests are aligned with GSL's. The company came public via SPAC and its chairman, who organized the SPAC, is Michael Gross (formerly of Apollo Management, and currently chair of Solar Capital and Solar Senior). Currently, GSL is being forced to amortize its debt with all excess cash. Right now it generates ~$60M of cash flow from ops annually compared to a market cap of $157M. There are $48M of prefs out (held by CMA CGM) and $459M of debt. The company has an LTV test in November, which I do not expect it to pass. The LTV should be extended for 6-12 more months. I believe a dividend will be resumed either mid 2013 or end of 2013. The container market itself is currently facing demand slack and supply issues, but I expect those to abate in 2014 and beyond. Much of the tonnage delivered in the past two years was ordered in 2008-2009 (it takes about 3 years to deliver a vessel). If global demand picks up (container demand growth is generally 2x GDP growth), we could quickly see a shortage in the space. Aside from that, however, the industry had excess supply from 2000-2007 and was able to earn good profits by laying up ships and creating artificial supply constraints. Maersk, the industry leader, has recently taken the lead in reducing capacity (having pulled 20% of Asia-Europe capacity) and has shifted the dialog to rational competition from price wars which dominated 2011 and bled the industry dry. Link to comment Share on other sites More sharing options...
MYDemaray Posted November 1, 2012 Share Posted November 1, 2012 One other comment I'll make, is that you have to pay attention to the fleet re-rate profile for these container ship owners. There are some, like Diana Container (DCIX) that look appealing at first glance, until you realize they purchased ships above market in order to get a temporary above market day rate. When these ships re-rate in a year or two, the cash flow will implode (the dividend yield suggests that it's illusory). Conversely, there are others like GSL and SSW whose majority of leases are long-lived. Link to comment Share on other sites More sharing options...
JEast Posted November 1, 2012 Author Share Posted November 1, 2012 My 2¢ is that GSL is one of a more speculative wager but they have surely been on the radar for the last 5 years too. I liked the proposition below the $1.50 range, otherwise in the too hard pile with such a smaller TEU asset profile with limited competitive advantages. This unlike SSW that has one of the few competitive advantages in the business with financial flexibility, multiple Asian relationships, and their own hull design going forward. The container space (unlike drybulk, etc) is one of cash flow, dividends, and moderate growth (the old GATX model). Yes, the re-rate profiles are very important and reason one needs the 10-12 year leases. In all, GSL and DAC have compelling asymmetric investment opportunities at much lower prices. Cheers JEast Disclosure: Very Long SSW Link to comment Share on other sites More sharing options...
MYDemaray Posted November 1, 2012 Share Posted November 1, 2012 I continue to believe that the valuation on GSL is compelling, and believe the shares are worth twice their current price. That said, SSW clearly has more financial flexibility, and its valuation premium (justifiably) reflects that. The larger ship size is important for efficiency as you point out, but as Gerry Wang said on the SSW call, the panamax class isn't going away. They are still effective on north-south, feeder and smaller trade lanes such as intra-Asia. The post-panamax/Ultras need deeper ports, etc. and are particularly effective on Asia-Europe and Asia-US. Link to comment Share on other sites More sharing options...
MYDemaray Posted November 1, 2012 Share Posted November 1, 2012 Good BCG piece on the state of the container shipping industry and what needs to change: https://www.bcgperspectives.com/Images/BCG_Charting_a_New_Course_Oct_2012_tcm80-118384.pdf Link to comment Share on other sites More sharing options...
VAL9000 Posted December 6, 2012 Share Posted December 6, 2012 SSW taking on additional financing - looks to be in connection with a new vessel purchase / long term charter arrangement: http://ir.seaspancorp.com/releasedetail.cfm?ReleaseID=725017 Gerry Wang is also in talks to extend employment as CEO beyond Jan 1 2013 to sometime in 2015. That's good, because he's barely done anything for the past 2 years and was paid quite handsomely. Balancing that critique I will say that this is lack of activity is attributed more to the condition of the container ship market than for Gerry's lack of effort. Link to comment Share on other sites More sharing options...
JEast Posted December 6, 2012 Author Share Posted December 6, 2012 Per the recent prospectus, they are looking to add four (4) new vessels with the same, assumed major liner. Two vessels of 10K TEU, and two of 4,600TEU. Of the potential 10kTEU vessels, they will be of a fuel efficient internal Seaspan design. Would expect more details in 1st quarter 2013 and with potential deliveries of the 10kTEU in 2014. Cheers JEast Link to comment Share on other sites More sharing options...
MYDemaray Posted December 6, 2012 Share Posted December 6, 2012 ...I will say that this is lack of activity is attributed more to the condition of the container ship market than for Gerry's lack of effort. Agree. Better to do nothing, when there is nothing to do. Financing has been difficult, and it's a testament to Gerry that they are finding ways to secure vessels in this environment. I have no position in SSW, but think SSW is in a good position to take advantage of current industry conditions... Link to comment Share on other sites More sharing options...
JEast Posted December 7, 2012 Author Share Posted December 7, 2012 The preferred 'D' was priced at 7.95% today and 0.5% better than this analyst expected. A little surprised at only $67 million though (another $10 for over allotment) as I would suspect that they still have enough remaining on there banking lines. Or the preferred 'D' will only be used for the (2) 4,600TEU vessels. If so, quite attractive at estimated $80 million. http://ir.seaspancorp.com/releasedetail.cfm?ReleaseID=725493 One additional tidbit on value investing though in reference to lack of activity from above, "A value investor is actually working the hardest when he/she appears to be doing nothing." Cheers JEast Link to comment Share on other sites More sharing options...
Uccmal Posted December 7, 2012 Share Posted December 7, 2012 The recent rise was due to SSW being put back on the marginable securities list. The morning this occurred I added 1000 shares which then went up in value by 1.50. Luck favours the prepared mind! Link to comment Share on other sites More sharing options...
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