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19 Shipping Stocks Far Below Book Value; Yields Still Up To 32%

If I screen the market by interesting investing ideas, one industry often popped on my screen: The shipping industry.

For sure, the global trade slows down and commodity costs are at the lowest level for decades. What looks like bad news for shipping stocks but also a great opportunity for long term investors?

Let's try a look. Ships are not equal. These are container ships, tanker etc. and each industry has a different cyclic.

The recent correction in share prices across shipping stocks, barring tanker operators, has transpired into attractive valuations. 

While investors are skeptical of catching falling knives, sitting on the cash means missing good bargains. 

Investors should adopt a diversified portfolio within the maritime space, to insulate from heightened uncertainty in the sector. 

We have followed top-down approach to build our model portfolio, while considering company-specific factors such as the balance sheet strength, financial performance and management profile for stock selection. 

It is important to note that shipping is a high-beta sector and tends to underperform/outperform the financial markets by a wide alpha on both sides.

Attached I've tried to compile a few dividend paying shipping stocks that might look like bargains due to low price to book ratios and earnings multiples. What du you think? Are shipping stocks worth an investment? Leave a comment and we discuss the idea.

Here are the results...

19 Shipping Stocks Far Below Book Value; Yields Up To 32%

1 comment:

  1. Interesting for sure but takes alot of research to understand how the individual markets can be expected to perform the coming years in regards to the demand side but also supply side when it comes to new ships vs scrapping.

    I hold Dynagas, DLNG that would enter at nr 3 at your list of highest dividends. It will actually raise its dividend the next time in May by 4-6%. I also hold GMLP.

    These are actually two different kind of businesses, LNG transport vs mainly FSRU (regasification vessels).

    As I see it the demand vs supply situation will be great for both these sub sectors in 2017-2018 when these companies begin to have contracts coming off.


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