Anybody know anything about shipping companies? | TigerDroppings.com
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rickgrimes
LSU Fan
Member since Jan 2011
2999 posts

Anybody know anything about shipping companies?

TEU was recommended by some folks on here in the past for its high dividend. Are there any other shipping companies that have a high reward potential?

Image: http://i.imgur.com/nmVjl.png width=600
This post was edited on 1/9 at 5:02 pm



b-rab2
LSU Fan
Lafayette
Member since Dec 2005
10327 posts

re: Anybody know anything about shipping companies?
TOO, NMM. Both high dividend Pretty stable


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ynlvr
LSU Fan
Baton Rouge
Member since Feb 2009
1061 posts

re: Anybody know anything about shipping companies?
I don't claim to understand this industry but i rode the wave up on NM, TNK, TGP, TEU over the past month. But beware, they have troubled past. Not sure when to bail or if I should hang around to collect the dividends.


rickgrimes
LSU Fan
Member since Jan 2011
2999 posts

re: Anybody know anything about shipping companies?
Why exactly do these companies pay such high dividends? What is their modus operandi?


ynlvr
LSU Fan
Baton Rouge
Member since Feb 2009
1061 posts

re: Anybody know anything about shipping companies?
I don't know the story. They do tend to pay hefty Divies. I entered playing an upside potential in a recovery. Thinking Shipping has to be a cyclical play. But the numbers are all over the map on these guys. TEU has huge profit margins, is selling at low P/E, and pays ultra high dividends.

It is a small cap player and I presume can move pretty fast. It has a small fleet and is a different game than the tankers - box containers vs petroleum products. I dunno. Keeping my ears open.


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LSUAlum2001
LSU Fan
Tier BP
Member since Aug 2003
30920 posts

re: Anybody know anything about shipping companies?
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.



ynlvr
LSU Fan
Baton Rouge
Member since Feb 2009
1061 posts

re: Anybody know anything about shipping companies?
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.


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GenesChin
Virginia Fan
The Promise Land
Member since Feb 2012
16263 posts

re: Anybody know anything about shipping companies?
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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rickgrimes
LSU Fan
Member since Jan 2011
2999 posts

re: Anybody know anything about shipping companies?
Dividends/Yields and today's prices of the companies mentioned in this thread:

TGP - 0.68/9.72% - $40.18
TOO - 0.51/7.44% - $27.54
NMM - 0.44/12.30% - $14.47
TEU - 0.22/16.03% - $5.47
NM - 0.06/6.35% - $3.74
SB - 0.05/4.83% - $4.12
TNK - 0.02/11.73% - $3.38
This post was edited on 1/10 at 3:53 pm


LSUAlum2001
LSU Fan
Tier BP
Member since Aug 2003
30920 posts

re: Anybody know anything about shipping companies?
You should fix those dividend %.

TGP: 6.8%
TOO: 7.5%
NMM: 12.7%
TEU: 18.1%


rickgrimes
LSU Fan
Member since Jan 2011
2999 posts

re: Anybody know anything about shipping companies?
Done. I got the div and yield mixed up. I guess typing on my puny iPhone and switching between tabs is not a good excuse?
This post was edited on 1/10 at 3:54 pm


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