CAI International Inc. Message Board

  • nonperformingassets nonperformingassets Oct 27, 2011 4:40 PM Flag

    Wow - .70

    Annualize that, with a 5% sequential growth, and you get $3.00 a share in earnings annually, there is 5% less float with the buyback, so it is more like and on $3.15 a share, and with 20% growth and even a 10 PE - $31.50 and by the way, the economy is growing, and i am a republican, and i fully realize that this means obama will probbaly win.

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    • I think you might be a little optimistic. The current high earnings are an historical anomoly, in that utilization in the industry has never been so high. It will probably drop next year to around 96%, causing direct expenses to double. I would expect no growth in earnings next year in spite of moderate fleet growth. Also, this whole sector is hit by strains on the shipping industry, who's cash positions and stock prices are at historic lows. 1 or 2 big bankrupcies in that sector could hurt, but I think the fear is worse than the reality. I think CAI is worth far more than it's current price, but when the market will agree with that sentiment is anyone's guess. There's a glut of new fuel-efficient ships hitting the water, driving down shipping rates and hurting the shipping lines.

7.68+0.18(+2.40%)2:35 PMEDT