Hello Jo,
have you ever happened to look into a company called SFL Corporation $SFL ?
I stumbeld over an article by wallstreet online which was featuring them. From what I read that could be an investment vehicle one could use to cover a wider range of the shipping market with just a single stock. They charter ships to a number of different operators.
https://www.wallstreet-online.de/nachricht/19313308-passives-einkommen-hochdividende-hochglanz-koenigliche-rendite-hoher-see
Greetings, Martin
have you ever happened to look into a company called SFL Corporation $SFL ?
I stumbeld over an article by wallstreet online which was featuring them. From what I read that could be an investment vehicle one could use to cover a wider range of the shipping market with just a single stock. They charter ships to a number of different operators.
https://www.wallstreet-online.de/nachricht/19313308-passives-einkommen-hochdividende-hochglanz-koenigliche-rendite-hoher-see
Greetings, Martin
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5Lun
@NichtRelevant Hello Martin and thank you for your comment and regular reqding, it's reqly motivating 😊
I indeed know about $SFL even if I do not cover it in my articles nor follow it on a regular basis.
While you could think that being diversified in a wide spectrum of activities could offer resilience, you take the big risk of doing everything and be truly good at nothing, while other companies focused on a specific activity like $SBLK and $INSW or $FRO or $ZIM take the risk of the volatility of their own market, but have the experience, the tools and the experts to mitigate the volatility effect.
Out of curiosity I took a look at $SFL chart year to date and compared it to $INSW and $SBLK and $ZIM, and out of those 4 stocks, only SBLK and INSW were in positive territory (+4% and 5% ) while SFL was down almost 19% and ZIM down 35%.
Also considering their portfolio, containers and car carriers makes 56% of their vessels, but represented 80% of their revenues in the last announced revenues in Q4 which signals to me an under-performance in their other sectors especially knowing how hard the container market got hit in recent time yet they announced new building of container ship in the last quarter.
Otherwise their asset value match their liabilities 1 on 1 which indicate to me a cautious approach regarding balance sheet.
Dividend-wise, after a huge cut in 2020, they seem to be back on a regular track with smaller dividends, but meaningful increase each year (see if this strategy can resist to market shocks) and stable amounts
My conclusion is that the company isn't too bad, they have a solid balance sheet, a regular and stable dividend but their stock price performance indicate an under performance regarding the broader market and they lack behind competitors specialized in a single market.
If I had to invest in it, it would be in a small position (below 2% max) just for the dividend but would cautiously watch the balance sheet and portfolio performance. :)
I indeed know about $SFL even if I do not cover it in my articles nor follow it on a regular basis.
While you could think that being diversified in a wide spectrum of activities could offer resilience, you take the big risk of doing everything and be truly good at nothing, while other companies focused on a specific activity like $SBLK and $INSW or $FRO or $ZIM take the risk of the volatility of their own market, but have the experience, the tools and the experts to mitigate the volatility effect.
Out of curiosity I took a look at $SFL chart year to date and compared it to $INSW and $SBLK and $ZIM, and out of those 4 stocks, only SBLK and INSW were in positive territory (+4% and 5% ) while SFL was down almost 19% and ZIM down 35%.
Also considering their portfolio, containers and car carriers makes 56% of their vessels, but represented 80% of their revenues in the last announced revenues in Q4 which signals to me an under-performance in their other sectors especially knowing how hard the container market got hit in recent time yet they announced new building of container ship in the last quarter.
Otherwise their asset value match their liabilities 1 on 1 which indicate to me a cautious approach regarding balance sheet.
Dividend-wise, after a huge cut in 2020, they seem to be back on a regular track with smaller dividends, but meaningful increase each year (see if this strategy can resist to market shocks) and stable amounts
My conclusion is that the company isn't too bad, they have a solid balance sheet, a regular and stable dividend but their stock price performance indicate an under performance regarding the broader market and they lack behind competitors specialized in a single market.
If I had to invest in it, it would be in a small position (below 2% max) just for the dividend but would cautiously watch the balance sheet and portfolio performance. :)
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•@Jo_Wolf Wow! Cool analysis - thank you very much!
It clearly shows that you have watched the market and its players very closely and you are able to read the numbers in the company reports.
You should initiate an investment fund to cover the shipping market. Ever thought about opening something like that (I guess wikifolio is too expensive but maybe there are alternatives).
It clearly shows that you have watched the market and its players very closely and you are able to read the numbers in the company reports.
You should initiate an investment fund to cover the shipping market. Ever thought about opening something like that (I guess wikifolio is too expensive but maybe there are alternatives).
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•4Lun
@NichtRelevant I don't consider having enough expertise myself nor having the funds to start such an adventure, there's many other people much more qualified than me that definitely can pretend to provide investment advisor services.
It's not an investment fund, it's more of a research group but Value Investor's Edge offer a great coverage of everything related to shipping, but the cost is huge... talking about 1000$ a year... not sure it's worth it for the " small " investors '=
It's not an investment fund, it's more of a research group but Value Investor's Edge offer a great coverage of everything related to shipping, but the cost is huge... talking about 1000$ a year... not sure it's worth it for the " small " investors '=
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