HoHumYNWA's shipping basket May 2023

Starting the monthly thread early again.

  • Bumped up stakes in both FLNG and FRO, so each is now over 20% of Shipping port. Had also bumped up stake in NAT, who announced Q1 results today (05/22). Monetized a NAT portion today. Happy to monetize more leading up to ex-div date. FLNG has already announced Q1 2023 results, which were somewhat disappointing. Yes, the company maintained the dividend, Yes, the first round of dry docking of vessels have started (two down, two more to go).
    Investment premise: “safe” div of 75c/sh, plus a potential extra 25c for the Q3 div. But if they aren’t going to spend on a newbuild, why the whole cash build-up from the fleet optimization exercise?

FRO - plain and simple, the older share are mostly a bet on price recovery, Newer shares, medium term bet based on outlook,

Closed out most of the ZIM stake last week. After results were announced pre-market today, ZIM shares took a dive. Saved myself from a falling “container” One interesting item - it wasn’t the trans-Pacific route that bit them, It was other routes that resulted in their 10% dip in volume. Have to listen to the call, but what of the car carriers? That’s supposed to be a fairly hot niche.

Even after reporting decent numbers, TRMD selling off. Added to the position after earnings news, and will likely add more soon. I think these guys can likely deliver a 10-12% yield (First TRMD nibble should get there after the Q1 pay-out).

4 Likes

05/23
CLCO reported Q1 2023 results earlier. Glad I built up my CLCO stake - div bumped up by a penny to 41c/sh. Shares bounce on the solid results. Still not sure why exercising the newbuild options is such a hard decision. Yes, I realize $235M is a high priced asset. But, the near term delivery date and the price being lower than a currently priced LNG newbuild @ $260M, should make the decision point easier. Plus, CLCO have the net proceeds from the Golar Seal deal - more than $90M available for use.

NAT price behavior validating my decision to take some NAT gains yesterday

Too much going on - didn’t get to update the stats till now. Not a pleasant month - last day or two, the basket flipped to negative. Individual positions - 6 Green, 8 Red

  • More CLCO nibbles
  • ZIM trim paid off
  • FLNG nibble after results
  • NAT trim after results
  • Two SBLK nibbles

As a basket %
FLNG 21.65
FRO 20.47
SBLK 12.68
CLCO 11.77
TRMD 8.41
NMM 7.34
NAT 5.10
GOGL
TNP-E
GSL
ZIM
INSW
SFL
BDRY

Dry bulk shipping weakness shows (vs comparable qtr in 2022)
Tanker market strength (vs comparable qtr in 2022) seems to be ignored