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.
