i wrote on this board about two weeks ago. this is one mans opionion. tood bunton is not a shipping expert or is he a drilling rig expert. would take a bet that he has not seen the drilling rigs this co. owns. the business model for this co. is one that for long term investors is an oppurtunity for good dividends. during down turn two and a half years ago they cut the dividend in half. since then they have raised their dividends every quater.this is my biggest investment. i do not expect to change that any time soon.
good investing to all
Board, I believe SFL is being unfairly punished because of frontline and the shipping industry in general as most people dont understand how SFL operates. That being said, I am not sure how safe this is in the short term, but you cant go wrong in the long run. I am also looking to add to my position in SDRL as I think it is one of the best stocks you can buy. Ship Finance is more of a safer play while Seadrill should have some very nice growth.
wow people who own SFL dont know their business model at all.
the debt is all backed by the ships, asset backed essentially, and the average life is 25 yrs while the payback is 12-13 years so the remaining yrs become all profit is how they structured it.
in addition, the leases are on average 11-12 yrs at this point so the cash flows are "guaranteed" which is where the cash flow comes to pay out dividends and if you read last presentation you can see their "coverage" ratio is more than 1.0 so there is no reason for them to cut dividend.
i think the stock is suffering from psychological exposure to fro which is real but they are ebitda pos after paying lease payments even at these levels and they have no outs to not pay.
plus 70% of the business is drillers and container box leases which are doing v v well.
buy more on scale lower is my call
Debbie...I am also concerned, you are doing a good job of helping to keep this message board going and investing is what it is all about...! Again, I loaded up on more SFL recently and I also still feel that SDRL has very strong color...if it was easy we would all be wealthy without any effort...! Myself, I hardly ever buy a stock that does not return something to the investors and that is why I always hold high dividend stocks...! I really feel that SFL is way oversold but that does not mean that it may not still go lower...SFL's share price is being pulled down by poor results in the shipping industry, even though they have a different type of business model...! Good luck and keep the faith...!
Debbie...If SFL would cut their dividend I am sure current holders would take a haircut and this is not good....However, it should take a default from some of their major leases and I do not see that happening because "shipping rates tend to increase in the second half of every year"...! The question is, if they reduce the dividend and how much....? More, let us not forget that SFL is getting a large slice of their current/growing income from off shore drilling rigs which is very hot business at this time...! That said, I will keep holding because I need SFL to diversify my portfolio (I already have to much of my funds in REITS)...! Thanks for the information...!
won't make G-Facts very happy now would it? Closed half my SCCO position just before the close at $36.54.........SCCO was up 92 cents today while SFL is down another 30 cents.....should have diversified into SCCO when it was under$35..........good luck to you anyway! TWO and AGNC both held their own today! Waiting to add some CYS back if it falls to 12.55 again.....Have a nice evening.
Debbie, thanks for the link. I don't want to take on any dispute of the metrics in the article but it seems to be misleading in one aspect. The article states that SFL owns and operates ships. Not exactly correctly, as I understand the company. On the SFL website, they state: "The day to day operation of the vessels is either done by our clients or by third party ship managers appointed by Ship Finance." Isn't SFL a vessel leasing company, not a vessel operating company, with a steady, predictable stream of leasing income from long term leases or charters? If I'm mistaken, could someone explain. Thanks.