Value Investing Asset Value Of Containerships |
| Posted: 01 Mar 2020 02:12 PM PST Recently, I have been analyzing a company called Seaspan which is a containership lessor. They have just released their Q4 earnings presentation (https://www.seaspancorp.com/ir-dashboard/financial-information/earning-reports/) and within the slides, they talk about the historical containership asset value (on slide 7). I have 2 questions regarding this chart: 1. I am having a difficult time trying to understand what this chart represents. Can anyone please help me interpret this chart? 2. They referenced the Jan 2020 Clarkson Research report. Does anyone have a link to this document? [link] [comments]  |
| Preferred stock opportunities? Posted: 01 Mar 2020 09:35 PM PST Preferred stocks have been trading at low yields given the low interest rates. PGF, PFF and PGX are the obvious ETFs. They only yield around 5% to 5.5%+, which is quite low compared to high yield bonds, though preferreds from IG (bank) credits may be better than HY bonds. Instead, I've been looking at some of the more small issuers from smaller sectors (REITs, BDCs, shipping). Some names have traded down quite a bit with the recent market volatility, particularly as liquidity is thin in most of these names. Yields continue to be low in a lot of the names for the amount of risk, which makes sense, but I think there could be some value. With the interest rates at new lows, does an allocation to these lower-grade preferreds make sense now? Any preferreds you are holding or looking at? I do see that some preferreds in these sectors come with some really unique structures (fixed-to-float, explicit maturity, step-up in coupon (possibly acting as "soft" maturity), board member right if not redeemed in X years, etc.). Many of these are likely used to entice investors in small issuers with sketchy balance sheets. But in some ways, some preferreds may have structural protection that make them almost bond-like. How do you think about these structural protections, and any way to value them? [link] [comments]  |
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