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re: Anybody know anything about shipping companies?

Posted on 1/9/13 at 9:52 pm to
Posted by LSUAlum2001
Stavro Mueller Beta
Member since Aug 2003
47144 posts
Posted on 1/9/13 at 9:52 pm to
quote:

Why exactly do these companies pay such high dividends? What is their modus operandi?


Ridiculous profit margins.

Safe Bulkers (SB) has had a profit margin >50% for 3 years straight.

Posted by ynlvr
Rocket City
Member since Feb 2009
4597 posts
Posted on 1/10/13 at 8:18 am to
True. Revenue and earnings Trends for the most part have been down, down, down for the sector since 2008 for obvious reasons, but I suspect a bottom may have been reached. If correct, it will be a nice ride up. Tempting enough to pull me in.

NMM is a General Partner play with high dividends, low debt, low P/E, high profit margins.
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 1/10/13 at 10:02 am to
I read that there is only expansion through purchasing new boats and shipping charters but profits are not high enough to buy new boats so it gets passed along to dividends. Then they do boat financing which just affects future earnings.
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