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.