Samudera Shipping

[Behappyalways]

Samudera result is out.....

NTA US 59.2 cents
EPS US 23.9 cents
Final Dividend 13.5 cents

More than 20% dividend yield

[valuebuddies]

Congratulation to everyone vested!

[Squirrel]

Samudera Shipping Line is an interesting investment proposition at the moment. Container shipping rates are at an unprecedented high. Shipping companies' share prices are on a tear in general.

Driven by a historical high in cash levels, I am of the view that they will look to boost shareholder value by 1) special dividends, 2) share buybacks, 3) expanding in Industrial Shipping in Indonesia via the newly proposed JV structure in the recently announced AGM.

For further details you can refer to https://www.thesquirrelsdrey.com/post/sa...t-or-is-it

Congrats to all who are vested. The company lived up to its historical distribution and is distributing up to circa 44% of profits as detailed in an earlier post. This is a cash churning machine as long as supply crisis persists.

[Behappyalways]

http://investideas.net/forum/viewtopic.p...9&start=90

[Behappyalways]

Earned 32 cents last year.... Probably earn as much this year....

So total of 64 cents....vs share price of 67 cents....

3 cents (67-64) valuation for the assets.... Cash alone already worth 46.6 cents.....(US 186m/ 538m shares)....

[weijian]

A good read on the link...expecting higher profit for 2nd half...as stated by squirrel in the earlier message

https://indoshippinggazette.com/2021/sam...this-year/

Some of the chartered ships are from the parent company. In their latest commentary the company expects to chartered 2 more ships in 2022. My guess is that the ships are most probably built and expected to be delivered to Samudera Indonesia in 2022. Why is the parent company buying ships and not Samudera...my guess is the cabotage rule. With the us$115m ( incl the proceeds from sale of ship that was announced in July) Samudera is using part of the cash to invest in Indonesian shipping company that ply intra-shipping in Indonesia ( because of cabotage?)

Interesting part is that the parent company is taking up on debts buying ships while cash sits on Samudera.....

Hi Behappyalways,

Once again, this proves that structure is a key portion of investing. Good call! 
This reminds me of Bonvest continuing to empty Colex of its cash for a 2nd consecutive year.

Unfortunately, old long time VBs' warnings of the shipping cycle been 3year upturn/7 year downturn is deeply imprinted in my DNA and alas, I have missed this opportunity. I do look forward to be able to transform to be more nimble and open minded for the future.

[Shiyi]

A good read on the link...expecting higher profit for 2nd half...as stated by squirrel in the earlier message

https://indoshippinggazette.com/2021/sam...this-year/

Some of the chartered ships are from the parent company. In their latest commentary the company expects to chartered 2 more ships in 2022. My guess is that the ships are most probably built and expected to be delivered to Samudera Indonesia in 2022. Why is the parent company buying ships and not Samudera...my guess is the cabotage rule. With the us$115m ( incl the proceeds from sale of ship that was announced in July) Samudera is using part of the cash to invest in Indonesian shipping company that ply intra-shipping in Indonesia ( because of cabotage?)

Interesting part is that the parent company is taking up on debts buying ships while cash sits on Samudera.....

Hi Behappyalways,

Once again, this proves that structure is a key portion of investing. Good call! 
This reminds me of Bonvest continuing to empty Colex of its cash for a 2nd consecutive year.

Unfortunately, old long time VBs' warnings of the shipping cycle been 3year upturn/7 year downturn is deeply imprinted in my DNA and alas, I have missed this opportunity. I do look forward to be able to transform to be more nimble and open minded for the future.

A parallel case in terms of business and dividend is a Hong-Kong listed company Pacific Basin. It's made a record profit and declared final dividend of HK$0.60. Inclusive of the interim dividend, total dividend comes to HK$0.74. This means a 19% yield.

But unlike Samudera, the share price of Pacific Basin was flat post result announcement.

[dreamybear]

A good read on the link...expecting higher profit for 2nd half...as stated by squirrel in the earlier message

https://indoshippinggazette.com/2021/sam...this-year/

Some of the chartered ships are from the parent company. In their latest commentary the company expects to chartered 2 more ships in 2022. My guess is that the ships are most probably built and expected to be delivered to Samudera Indonesia in 2022. Why is the parent company buying ships and not Samudera...my guess is the cabotage rule. With the us$115m ( incl the proceeds from sale of ship that was announced in July) Samudera is using part of the cash to invest in Indonesian shipping company that ply intra-shipping in Indonesia ( because of cabotage?)

Interesting part is that the parent company is taking up on debts buying ships while cash sits on Samudera.....

Hi Behappyalways,

Once again, this proves that structure is a key portion of investing. Good call! 
This reminds me of Bonvest continuing to empty Colex of its cash for a 2nd consecutive year.

Unfortunately, old long time VBs' warnings of the shipping cycle been 3year upturn/7 year downturn is deeply imprinted in my DNA and alas, I have missed this opportunity. I do look forward to be able to transform to be more nimble and open minded for the future.

A parallel case in terms of business and dividend is a Hong-Kong listed company Pacific Basin. It's made a record profit and declared final dividend of HK$0.60. Inclusive of the interim dividend, total dividend comes to HK$0.74. This means a 19% yield.

But unlike Samudera, the share price of Pacific Basin was flat post result announcement.

Though I am not vested, congrats to all vested.

Thanks to Shiyi for pointing out a parallel. I noticed the discussions here mostly centered on the merits of individual companies. If we follow WB's "punch card" concept, we should probably only choose the best(among the good ones) to invest in. 

Hence, I hope for more discussions pertaining to the comparison of good investment ideas(i.e. similar companies) which have been identified by the buddies here e.g. Samudera (SGX) vs Pacific Basin (HKEX), The Hour Glass (SGX) vs Oriental Watch (HKEX), etc.  

[¯|_(ツ)_/¯]

Good morning bear.
Yes, I like your suggestion to see more comparison between companies (in the same or even different industries) too.

I had been practising the "punch card" concept and hence super concentrated portfolio.  And, precisely, before I vested, I just compare my "newly" found ideas with those ideas which I had already vested.

I typically favor the "newly" found ideas to be in different sector/industry from those already vested - for a simple reason - I picked the best for that sector/industry and the 2nd best would not make a lot of sense to me (to buy since I already gotten the best).

Unfortunately, I'm not a financial/investment analyst and so my comparison is based on very simple (aka common) matrix (financial ration, business ratio, management track records and dividend history, etc).  

These simple matrices, plus the urge not to "punch" a stock hastily, had been very rewarding to me.

I guess, this is the part that although I like to see more sharing from valuebuddies on the comparison between stocks, in actual facts, the best way to learn is to do the comparison myself. 

As a learning journey, I realised that being a valuebuddies, I got to identify and brought stocks at a discount, not because the stock is good but because the stock is undervalue and not discovered/covered by financial/investment analyst.

Routinely, I read those published papers and routinely, they are just in the back of my mind.  I rarely took actions aka brought the stocks.  Instead, I would run thru those interesting stocks against my simple metrics and see whether it passed my criteria - almost 100% got gun down.

Rarely, the stock could pass my simple metrics. And, if it does, then I will put them in to the fighting pitch with my vested stocks - and compare one-by-one.  Rarely, they are able to win over my vested stocks.  

Occasionally, when they are able to make it - most of the time - is because it's a initial reports (by the analyst) and there are not many people paying attentions and the company is turning around (e.g. new biz opportunity or results), then I would just punch my card and buy until I am happy or when the stock price started to move upward (which I am even more happy).

So far, my simple metrics and method works and although I love to read valuebuddies doing the comparison, I found it more satisfying to uncover a undervalue gem which is not discovered.

Stay safe and stay healthy everyone.
 

Have a nice weekend, enjoy:

[Yoyo]

Samudera result is out.....

NTA US 59.2 cents
EPS US 23.9 cents
Final Dividend 13.5 cents

More than 20% dividend yield

While Samudera Indonesia results has not yet released, it’s share price has rallied 22% on the back of the stellar result announcement of Samudera Shipping.