First Ship Lease Trust

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Hi All,

A reflective and publicity piece by us on First Ship Lease since our initial stake in FSL in 2019.

https://weightedresearch.substack.com/p/...-portfolio

Thanks for reading.
Reply
Hi All,

A reflective and publicity piece by us on First Ship Lease since our initial stake in FSL in 2019.

https://weightedresearch.substack.com/p/...-portfolio

Thanks for reading.
Reply
A follow up article on First Ship Lease and the perception of risk.

https://weightedresearch.substack.com/p/what-is-risk

Enjoy the read.
Reply
A follow up article on First Ship Lease and the perception of risk.

https://weightedresearch.substack.com/p/what-is-risk

Enjoy the read.
Reply
(17-11-2020, 01:17 PM)ongweehiang Wrote: A follow up article on First Ship Lease and the perception of risk.

https://weightedresearch.substack.com/p/what-is-risk

Enjoy the read.

Thanks for the article.

While I agree with you that on a yield perspective FSL does look attractive, they are paying out from capital and not operating earnings.  At the same time, i noted that the three dividend payments across the year is quite close to the cash received from the disposal of vessel. Perhaps they are just doing dividend payout to return the cash from the vessel disposal and not to be a recurrent dividend payer. Hence, the market is not re-rating them despite the generous dividend.
Reply
(17-11-2020, 01:17 PM)ongweehiang Wrote: A follow up article on First Ship Lease and the perception of risk.

https://weightedresearch.substack.com/p/what-is-risk

Enjoy the read.

Thanks for the article.

While I agree with you that on a yield perspective FSL does look attractive, they are paying out from capital and not operating earnings.  At the same time, i noted that the three dividend payments across the year is quite close to the cash received from the disposal of vessel. Perhaps they are just doing dividend payout to return the cash from the vessel disposal and not to be a recurrent dividend payer. Hence, the market is not re-rating them despite the generous dividend.
Reply
(17-11-2020, 06:40 PM)r0n Wrote:
(17-11-2020, 01:17 PM)ongweehiang Wrote: A follow up article on First Ship Lease and the perception of risk.

https://weightedresearch.substack.com/p/what-is-risk

Enjoy the read.

Thanks for the article.

While I agree with you that on a yield perspective FSL does look attractive, they are paying out from capital and not operating earnings.  At the same time, i noted that the three dividend payments across the year is quite close to the cash received from the disposal of vessel. Perhaps they are just doing dividend payout to return the cash from the vessel disposal and not to be a recurrent dividend payer. Hence, the market is not re-rating them despite the generous dividend.

Hi r0n

Agree on your perspective. 

To be exact, this is just an article on the perspective of risk and irrationality. It just shows how risk adverse one can get if they had been burnt by a single stock. Wanting to be safe/risk adverse and betting on the recovery of oil is not a consistent/rational behaviour.  

This article is a follow up on my previous article on Special Situation investing by investing in rights issued by a new/aligned management. If you had attend all the AGM/EGM by FSL, the management had been very clear on their motives on liquidating assets and returning the excess cash. The management had delivered on that promise. The hardest thing is to judge if they are indeed trustworthy and would do so.  

In addition, the product tanker market is also not doing well so there is really not much reason to buy a small product tanker company/trust now. 

The market had re-rated the company. The rights had been issued at SGD 4.5 cents. USD 4.5 cents had been paid out as dividend and the shares is currently valued at SGD 7 cents. 

OWH
Follow my newsletter @ https://weightedresearch.substack.com/
Reply
(17-11-2020, 06:40 PM)r0n Wrote:
(17-11-2020, 01:17 PM)ongweehiang Wrote: A follow up article on First Ship Lease and the perception of risk.

https://weightedresearch.substack.com/p/what-is-risk

Enjoy the read.

Thanks for the article.

While I agree with you that on a yield perspective FSL does look attractive, they are paying out from capital and not operating earnings.  At the same time, i noted that the three dividend payments across the year is quite close to the cash received from the disposal of vessel. Perhaps they are just doing dividend payout to return the cash from the vessel disposal and not to be a recurrent dividend payer. Hence, the market is not re-rating them despite the generous dividend.

Hi r0n

Agree on your perspective. 

To be exact, this is just an article on the perspective of risk and irrationality. It just shows how risk adverse one can get if they had been burnt by a single stock. Wanting to be safe/risk adverse and betting on the recovery of oil is not a consistent/rational behaviour.  

This article is a follow up on my previous article on Special Situation investing by investing in rights issued by a new/aligned management. If you had attend all the AGM/EGM by FSL, the management had been very clear on their motives on liquidating assets and returning the excess cash. The management had delivered on that promise. The hardest thing is to judge if they are indeed trustworthy and would do so.  

In addition, the product tanker market is also not doing well so there is really not much reason to buy a small product tanker company/trust now. 

The market had re-rated the company. The rights had been issued at SGD 4.5 cents. USD 4.5 cents had been paid out as dividend and the shares is currently valued at SGD 7 cents. 

OWH
Follow my newsletter @ https://weightedresearch.substack.com/
Reply
Yield is poison....particularly high yield
Go study Omega Navigation ( dual listed) in SGX and Nasdaq
It was closest to FSL business...doing product tankers and bulk carrier charters. ( vessels less than 3 years old and some ice breaker class)
It paid 50 cents (US) per share per quarter for 2 years post listing in sgx & Nasdaq. Its trading range was mid 20s (USD)
After that it applied for bankruptcy in US. No shareholder receive a single cent from delist.

US also has many monthly dividend paying stocks/preference shares....
Preference shares VanGuard VNR series ( they are cumulative type) 7- 10 % distribution.annually...and as sweeteners paid out monthly. After about 2 years....these preferences shares wound up zero value....

we have our own,all too infamous version water treatment co in sgx

High yield is called junk for a good reason.

you hit a fast buck....and think you have special opportunities talent?
Reply
Yield is poison....particularly high yield
Go study Omega Navigation ( dual listed) in SGX and Nasdaq
It was closest to FSL business...doing product tankers and bulk carrier charters. ( vessels less than 3 years old and some ice breaker class)
It paid 50 cents (US) per share per quarter for 2 years post listing in sgx & Nasdaq. Its trading range was mid 20s (USD)
After that it applied for bankruptcy in US. No shareholder receive a single cent from delist.

US also has many monthly dividend paying stocks/preference shares....
Preference shares VanGuard VNR series ( they are cumulative type) 7- 10 % distribution.annually...and as sweeteners paid out monthly. After about 2 years....these preferences shares wound up zero value....

we have our own,all too infamous version water treatment co in sgx

High yield is called junk for a good reason.

you hit a fast buck....and think you have special opportunities talent?
Reply
High yield is not poison. Neither is high tech growth stock = growth. Or so called value stock = whatever it mean to anyone.

If investor is lucky with FSLT, how lucky can he be with the 2nd, 3rd of 4th. Same thing, Hyflux is unlucky bu if he ot a 2nd, 3rd or 4th, how unlucky can that be.

The problem is never with the stock but the investor
Reply
High yield is not poison. Neither is high tech growth stock = growth. Or so called value stock = whatever it mean to anyone.

If investor is lucky with FSLT, how lucky can he be with the 2nd, 3rd of 4th. Same thing, Hyflux is unlucky bu if he ot a 2nd, 3rd or 4th, how unlucky can that be.

The problem is never with the stock but the investor
Reply


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