Seaspan (SSW): An Update
I'm a fan of income. I'm a fan of corporate entities that pay a minimal amount to management. I'm also a fan of global trade. Thus, it might come as no suprise that I'm a big fan of Seaspan (SSW) and shipping in general. SSW is structured as a REIT and thus must pay out most of it's income in order to avoid corporate taxes. A structure I agree with since its forces citizens to pay their taxes right away. Anyway, here's a blog by Larry MacDonald about Seaspan. I don't know where he gets his fact that Seaspan is trading at a 50% discount to replacement value since they are in the middle issuing equity and of buying more ships. And while I think that Seaspan's recent equity offering will increase liquidity and thus the valuation, I'm also worried that the new equity issued may dilute earnings for a bit until the new ships can come online. I'll likely hold off on agressively buying unless I can buy shares around or below the offerring price of $21.50.
Disclosures and confessions: I own SSW in my trading account and my IRA. I also own Greek shipper Tsakos Energy Navigation (TNP).
Disclaimer: Nothing in this blog is meant to be specific financial advice or a recommendation to buy or sell. I do not give investment advice. Do your own research. Do not rely on anything in this weblog to make investment decisions. I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security.
Disclosures and confessions: I own SSW in my trading account and my IRA. I also own Greek shipper Tsakos Energy Navigation (TNP).
Disclaimer: Nothing in this blog is meant to be specific financial advice or a recommendation to buy or sell. I do not give investment advice. Do your own research. Do not rely on anything in this weblog to make investment decisions. I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security.
what is the medium term outlook for stability/growth in this div? What are your thoughts on how you will change your view of income (in the coming 2-4 years) given the powershift in DC ?
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The only thing we have to fear out of DC right now is protectionism. Perhaps as the Olympics and the 2008 elections near it will get more attention.
Since SSW is set up as an income trust I'm guessing the dividend is pretty stable. But I would (and do) own a diversified basket of income trusts if I were you.
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