Why is BREXIT good for GSL? I doubt container ship rates will go up due to this. Seems more likely that global trade will continue to slow down as countries break off from EU and protectionism starts becoming more in favor again. If global trade gets worse, seems rather bad for all shippers.
I don't know. I am very confused by it all... this is a good solid company in my view. I wish more people would invest.
Sentiment: Strong Buy
Ok, I will say I have one major concern. It is the OOCL lease. So, OOCL sells to GSL these ships when the market bounces and signs three year (thereabouts) lease backs. And now, GSL needs to roll these forward. The question is, did OOCL snooker GSL into buying these ships when the market rates bounced, thinking they could re-up on the leases if the market was right, or just dump em (or negotiate them down) if the market stagnated?
I don't know the answer, but this is why I need to find out where the roll-over of contracts stands.
Their competitors are all losing money, and GSL has positive EPS for the future; and cash to grow their fleet through a takeover.
Seems to me like they are the best in the business of a horrible sector which is suffering from social-economic factors.
Show me another company which has locked in eps of 0.10-0.30 for the next 3-4 years; and is trading close to $1.
Waiting to pull the trigger on this one....Also, I really like their Q-presentations.
Maybe they have and are simply adapting to shipping industry business conditions. Just like a lot of other companies are.
They eliminate the dividend after lying and saying they were going raise it. Then they say they will take the cash and use it to take advantage of the "bargains" out there in the shipping market. So far all is BS. Nothing. They should be barred from managing any company. Maybe sell flowers on the street corner--if they can qualify.
Got no buyers, either. Markets in negativity mode waiting for UK referendum vote on EU membership, vote is June 23. I'm torn on it, I hate to see the market get hit but usually make more money when it does.
Here we are again. No sellers at the $1.30 level. RSI 34. Low volume ho-hum. More than a 50% pull back from the greedy $2.50s runup. If it is no longer a sell, then what is it?