2020年7月18日

Thisinitiativetransformedasuper-cyclicalindustryintoonethatcloselyresemblesthereal-estateindustry–bothare“sellingtimeandspace,andtheyownfixedassetsthatcangaininvalueasreplacementcostsrise”。

Andfirmswhoseshareshadpreviouslyrisenorfallenonwavesof“heavilyleveragedearnings”suddenlybecamereliable(andoftengenerous)dividendpayers–especiallyincaseswherethecompany’sships“aretiedtolong-termcontractswithescalatorsorfavourablerenewaloptions”。

ArlingtonTankers(ATB,$21。

93),whichhasafleetwhoseleasesaregooduntil2008“andinsomecasesto2011”,thereforeoffersinvestorsaforwarddividendyieldinexcessof9%。

Butalthoughthenewwaveofthinkinghascausedtheindustrytosplitintonew“yield-oriented”andtraditional“leveraged”firms,thatdoesn’tmeanthatalloftheinvestmentopportunitiesareintheyieldcategory–especiallyincaseswherenewcapacityissupportedbyagrowingmarket,suchasAmerica’sdemandforenergy。

TheUSisimporting“oceans”ofcrudeoil,aswellas20%ofitsrefinedproduct。

Inaddition,Westernnationsareincreasingtheirimportsofliquefiednaturalgas(LNG),whichistransportedin“hugelyexpensivespecialisedships”。

OverseasShipholding(OSG,$50。

22)willbenefitfromallthis,saysMaraDerHovanesianonBusinessWeek。

com。

ItssharesaredownbymorethanaquarteraftersofteningshippingratesandHurricaneKatrinacausedWallStreetanalyststoreinintheirearningsforecasts,buttheyneverthelessnowtrade“belowtheresalevalueofthecompany’sfleetof61vessels”,accordingtoPhilippeLanieratBancofAmericaSecurities。

Thatmakesitthe“mostundervalued”ofthecompaniesinhissector。

Buy。

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