Bottom line is this deal is like an asset sale - the same as yesterday sears' sale of crafts brand, even better ssw has the right to buy it back at a given price (like having a call option) after 9.5 years Instead of issuing shares like CMRE did yesterday, ssw's management did a brilliant maneuver by this deal - again shows its cozy relationship with its customers can pay off
SSW has taken delivery of their new 14,000 TEU containership that has a ten year charter with an option of two more years. That is a nice new reliable revenue stream beginning. They have another five 11,000 TEU containerships they will be taking delivery of yet this year that are all committed to seventeen year charters. The real key is getting long term charter commitments for their last two 11,000 TEU containerships that were due for delivery this year. That they have the option to put those deliveries off until 2018 is nice flexibility, but much nicer would be an announcement they have chartered them and are taking delivery this year. Until then or until some significant news of industry and market improvement or buy outs I expect SSW to languish in the $5-$6 range. I miss the old dividend rate (LOL), but at +7% I am willing to be patient with some some share price languishing this year.
The news about the China downgrade from Moody's is causing the downdraft. Probably goes to new lows. World shipping needs China's growth to recover; that growth is now in doubt. I took a small loss and backed away. I'm very disappointed; I like SSW and thought they could make a huge comeback; but not w/o strong growth from China.
I have been a value investor for many years and this one caught my eye. If the industry is bottoming, then typically at this point, the undercapitalized companies go out of business, utilization ticks up and those that are left standing have more pricing power. SSW is one of those companies that will remain standing.
I think this bear has been all driven by the technical traders which don't pay attention to the fundamentals. That's all I read in the news is how the stock has lost ground. Hanjin left them in a pickle at a bad time. SSW situation has changed considerably since the beginning of the year. Charter rates are coming back, they have all their ships chartered, and they expectations again.
Bought in today at 5.77. 1/2 position. Will wait and see on the other 1/2.
I sure hope we are all not on a sinking cargo ship. I do still believe it could go down to $5 a share before coming back up but I'm hoping the bilge pumps are keeping up.
Why the rebound today?
In light of their recent sale/lease back with YM, there is a possibility that ssw will end its atm at any given time - I am back in
Looks like the shorts are covering today....They certainly "Have their way" with this stock.
According to the ConTex, Charter rates are up 40% from the bottom on ship ranges from 1100 TEU to 4250 TEU (Panamax). The amount of container ship scrapping were 1.717 ships per week for 2015, 3.769 per week in 2016, and are currently at 4.278 ships per week. I don't know what sizes they are scrapping, just the volume of ships.
Down, down, down. Hope SSW doesn't change its ticker symbol to SOS!
My thinking is this will stay in it's range until at least they finish with their 75M ATM. It appears they are in a hurry to get the money as they sold 25M worth of shares in March. I suspect they know exactly where they will put those funds or they wouldn't be in a hurry in the first place.
Interesting that CMRE got upgraded today but SSW is taking a hit. I get CMRE is the safer play, but SSW will be the bigger winner if the container markets really are recovering and the recent moves up are not just a short term blip.
''In March 2017, Seaspan entered into an equity distribution agreement under which it may, from time to time, issue Class A common shares in at-the-market ("ATM") offerings for up to an aggregate of $75.0 million. During March 2017, Seaspan issued a total of 3,700,000 Class A common shares under the ATM offerings for gross proceeds of approximately $24.7 million.''
Based upon these numbers it looks like they are selling for around 6.67 per share.
Earnings out. Comments/thoughts? (Revenues a little below forecasts, but EPS of $0.15 near upper range of forecasts and beat "consensus" estimate of $0.13.)
According to the latest Contex report, Panamax ship charters have moved from $4,500 a day to $10,500 a day in the last six weeks. Most of SSW's ships are larger than the Panamax (4250 TEU), but they do have 28 Panamax ships. The demand is going up.
Did they give guidance for next quarter during the Conference Call?
If all goes well, CMRE, a competitor, give a similar report (today after hours) and that will cement our gains. And like Stephen says, give us a short squeeze.