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Singapore Shipping Corp
07-11-2016, 09:40 AM,
Post: #331
RE: Singapore Shipping Corp
From Bloomberg:

Japan’s three biggest shippers agreed to combine their container operations to create the world’s sixth-largest box carrier, as the industry steps up consolidation this year amid a global turmoil in the sea-cargo business.
Nippon Yusen KK, Mitsui O.S.K. Lines Ltd. and Kawasaki Kisen Kaisha Ltd., which are predicting operating losses this year, will create a company that will control 7 percent of the world container-shipping trade, according to a joint statement in Tokyo Monday. The combination will need to be approved by regulators in the European Union, U.S., China and Japan among others.
[...]

http://www.bloomberg.com/news/articles/2...ner-merger

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23-07-2017, 07:41 PM,
Post: #332
Singapore Shipping Corp
Based on 2016 results, SSC has a price to free cash flow ratio of about 4.5. It seems Mr. Market is undervaluing this counter. Or is this a value trap? Food for thought.

Vested


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23-07-2017, 08:49 PM, (This post was last modified: 23-07-2017, 08:57 PM by CY09. Edit Reason: edits )
Post: #333
RE: Singapore Shipping Corp
Shipping counters tend to have a high free cash flow generation ability. This is because: 1) the economic useful life of ships (about 20 years); and the financing of these ships (more than 50% of the ship's value tend to be financed by debts). In addition, under cash flow accounting, the payment of loan principal and its interest tend to fall in the "cash flow under financing activity", this results in free cash flow (Operating - investing) to look disproportionately high. Ships tend to be only worth their scrap value at the end of their useful life

Using an example to explain: A coy buys a ship for 140 mil which has a cash flow (opex) generation of 10 mil for its 20 years with annual maintenance of 500k. It uses 100 mil of 20 year debt and 40mil equity to finance it.

Operating cash flow: 10 Mil.
Minus Maintenance Capex: 500k
Free cash flow: 9.5mil
free cash flow to equity: 23.75%

However if we are to include the annual debt repayment of 5 mil,
the revised free cash flow is 4.5mil, with a free cash flow to equity of only 11.25%

Therefore to get a more robust valuation for shipping related stocks, a better way is to further minus off the interest and annual loan repayment of principal

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24-07-2017, 04:12 PM,
Post: #334
RE: Singapore Shipping Corp
Thanks for the detailed explanation. So FCF will appear high as long as the company does not buy new ships.

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12-08-2017, 06:48 PM,
Post: #335
Ro Ro ship
Discovering Ro Ro Ship - published yesterday 11 Aug 2017


感恩

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19-09-2017, 05:25 PM,
Post: #336
RE: Singapore Shipping Corp
Thanks Chialc88,

Young boss, CEO has brought back significant amount of SSC, figure it's a good sign liao! Big Grin
he has also indirectly create the support for price @ 29cts.

Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 

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12-11-2017, 03:18 PM, (This post was last modified: 12-11-2017, 03:24 PM by chialc88.)
Post: #337
Rainbow  vested with $$$ from selling 100% of bwl
Good morning, valuebuddies.
Another day beginning with birds chirping happily in the forest.

Unfortunately, many of us live in a concrete jungle 
and can only enjoy the music from KTV.

enjoy a wonderful weekend:
听你说





I'm vested heavily in SpShip.
$$$ come from bestworld.

Significant amount of $$$ and hence need to be very careful in buying SpShip.

First questions is why SpShip?
Isn't it own and operate by the in-famous Ow family?

A: Exactly, why I thought SpShip is a good choice.
Ow is SG ambassador to Italy.
Last few years, he was in the news for stopping SL's dividends and 
multiple discussions on the right ways to treat value shareholders,
how to create a win-win-win for Employee-Ow-OPMI.

These events created -ve sentiment to SL (and I think SpShip) too.

Result: suppressed share price


Latest development:
Ow seems to move his power to young Ow and
definitely more OPMI friendly.
Big Grin

Second questions is why SpShip?
Isn't shipping a notoriously cyclical industry?
Aren't you scare of the recent O&G downturn impacting shipping industry?

A: mmm... bro, take a closer look at SpShip biz.
Let me know after you find out more about their biz model,
then we discuss on what and how is SpShip's cycle.
Of course, how our skilful and ruthless captain - Ow navigate the notorious shipping industry cycle.

Third questions - why SpShip?
Look at it's debt.
Are you aware the risk and danger of the huge debt it carries on it's book?

A: Yes. On one glance, I will drop SpShip from my watchlist due to it's high debt:asset 94m:175m
However, I'm very surprised that SpShip generated so many discussion (posts) in Valuebuddies.com
There must be something unique and special.
So, SpShip failed my level 1 screening but 
I still proceed to take a closer look because of various contributors of our valuebuddies.com
The rest is history.

A gem in the making.
So, the only questions in my mind is:
Will Singapore Shipping Corporations become a multi-baggers?

[Image: Singapore-running-out-of-land-ST-photo.jpg]
感恩

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