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The Company's business is to own containerships, charter them pursuant to long-term, fixed rate charters and seek additional accretive vessel acquisitions.
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Allstar13913 (99.93) Submitted: 8/03/07 11:49 AM : Start Price: $32.28 SSW Score: 10.83
Dry Bulk Shipping Valuations Approach Bubble Proportionshttp://biz.yahoo.com/seekingalpha/070720/41712_id.html?.v=1The Highlights:The demand for commodities from China and India combined with the shortage of dry bulk ships, is leading to an enormous increase in dry bulk rates. The world’s shipyards are backlogged with orders and the earliest deliveries available for new orders are in 2009. As energy hungry China has increased consumption of its own coal at the cost of exports, Japan and Korea have had to get supplies from Australia, resulting in extreme port congestion and tying up dry bulk capacity for weeks on end, thus leading to a further increase in dry rates. In the long term for this industry, there are no barriers to entry, no pricing power, and this sector should not trade at much above Net Asset Value. This sector is notorious for reneging on contracts. All those fixed time charters at today’s stratospheric rates? Once rates fall, the long term contracts will sink along with the sector! So it comes down to this: If you believe that the supply and demand imbalance fueled by the growth of world trade and especially the rise of India and China, will continue, then by all means go long. But if you believe, as I do, that human ingenuity combined with capitalistic greed, leads to efficient pricing, then this is a wonderful opportunity to short the entire sector. Even as you read this- Australia is taking measures to relieve port congestion, China has 14 yards under construction and another 9 due for completion by 2010 which are already taking orders, shipyards are doubling shifts to meet orders, old tankers are being converted into dry bulk carriers, insiders are looking to sell you their shares and the smart money is going short even as analysts raise estimates.
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jgcoutts (73.10) Submitted: 8/07/07 2:25 PM
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Last I checked Seaspan was a container ship leasing company, not a Dry Bulk shipper.Find an article that is relevent to the Container Sector with companies like Seaspan and Danaos if you want your opinion to be valued.
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Allstar13913 (99.93) Submitted: 8/08/07 11:04 AM
Lol. You obviously don't have a clue, and won't ever find one.Read the article. First. Its called due dilligence. Try doing some.If you had read it, it says that because of the increase in goods needing to be dry shipped, rates have increased. Because there are many new ship orders, over time the entire sector will revert to the mean. I'm shorting the entire sector.But then again, you might know more than me, since i'm #23 and your 600 something. Keep trying to call me stupid.Maybe it worked?Allstar
jgcoutts (73.10) Submitted: 8/08/07 4:42 PM
You are apperently ignorant of the fact that rates for containers have not risen in sync with the BDI and infact are sitting near the 2003 levels, well off the historical highs. Bulkers new or used are substantially less expensive than the more complex to build liners and that sector will be prone to a correction. As for the "liners" from the article, "This sector("dry bulk") is notorious for reneging on contracts. All those fixed time charters at today’s stratospheric rates? Once rates fall, the long term contracts will sink along with the sector! So it comes down to this: If you believe that the supply and demand imbalance fueled by the growth of world trade and especially the rise of India and China, will continue, then by all means go long. But if you believe, as I do, that human ingenuity combined with capitalistic greed, leads to efficient pricing, then this is a wonderful opportunity to short the entire sector." Seaspan's contracts are certainly of the long term variety, averaging aprox. 12 years, if you think that China Shipping Container Lines, Hapag Lloyd, Cosco, Mitsui or A.P. Mller-Mrsk will go into default on it's contracts as the author points out is the case with "dry bulkers" and that the current moderate container rates will not go up, go ahead and short this.No one will call you stupid, no one will care.
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