Box Ships (NYSE:TEU)

CAPS Rating: 3 out of 5


Player Avatar Teacherman1 (41.39) Submitted: 9/28/2011 3:32:42 PM : Outperform Start Price: $7.43 TEU Score: +1.63

Closed and re-opened to more accurately reflect my starting price.

I will get the comments I made before and attach them as replys.

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Member Avatar Teacherman1 (41.39) Submitted: 9/28/2011 3:34:23 PM
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This was from 9-16-2011, when I made my first purchase.

This is a good one to take a look at.

You will have to do some work by going to their site and looking at their Quarterly Report through June.

This is a containership "start up/spin off" which will be a dividend "cash cow".

They have a strong balance sheet, with debt to worth of 1:1 or even better.

They have cash and 6 (maybe 7 by now) ships on fixed rate charters.

The Quarterly Report is for only a few weeks of operation. They made money and paid a $0.15 dividend. They expect the dividend to be $0.30 for the Quarter ending at the end of this month.

I will write in more detail in a blog, but wanted to give a heads up for those who might be interested.

There may even be a hidden benefit for PRGN which has a good "chunk" of their stock.

There was a trade of shares to PRGN for a couple of ships.

It is similar to DCIX (which should start moving up when the Q3 Report is filed and they pay their next dividend.

I think DCIX has a better chance for quicker share price appreciation, but TUE (Box Ships) will be paying a higher dividend.

Both are good investments for the intermediate or longer term.

JMO and worth exactly what I am charging for it.

Member Avatar Teacherman1 (41.39) Submitted: 9/28/2011 3:49:34 PM
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This was from 9-18-2011

Pasting this from Seeking Alpha so I can include it in my blog.

I do disagree on their assessment of DCIX though.

Member Avatar Teacherman1 (41.39) Submitted: 9/28/2011 3:54:38 PM
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This was from 9-20-2011

This is a spin off container ship company from PRGN, and the IPO was in mid-April.

They currently have 7 ships, all under term charters running from August of 2012, to 2016. There are 3-2010 builds, 2-2007 builds, 1-2006 build, and 1-2004 build, so the fleet is on the average only 3.6 yrs old. One of these ships was purchased in August, after the Q2 results, and they plan to continue adding to the fleet as opportunities arise.

The average daily rate is $23,828, and the average daily cost to operate (including G & A ) is $8,333.

For the shortened Q2 ending June 30, 2011, they had revenue of $7.2M, and income of $2.3M, for an average of $0.16 per share on a weighted average of approx. 14M shares. Their EBITDA for this period was $4.6M.

They bought 2 of the ships from PRGN for cash and stock. It might be worth taking a look at the end of the third quarter to see what this does for PRGN's bottom line, since they received $0.5M in dividends for the shares they received, and if the $0.30 expected for Q3 holds up, PRGN should see about $4M a year from TEU.

They paid a dividend of $0.15 per share for Q2, and expect to pay $0.30 for Q3.

It is their intention to pay out 100% of available cash each quarter. The same people who run PRGN run this company, and since they receive good dividends, they have an incentive to keep the "cow giving milk".

Their "rough" balance sheet at the end of Q2, shows assets of $346M, of which $11M was in cash, and $321M in ships. They showed LTD of $149M, and equity of $178M, or a little over $12 per share of book value.

When they finish up Q3, there should be a rise in the stock price, because at today's price ( $7.70 ) , they would be yielding about 14%, if they pay out $0.30 per share.

This one is similar to DCIX, but the balance sheet, while strong, is not as strong as for DCIX.

I think both of these are good longer term investments. Do your own DD by going to their web site, and for a good write up on TEU, you might want to look at the Seeking Alpha article.

I think Seeking Alpha overlooked how strong DCIX will be going forward, but we are each entitled to our own opinions.

JMO and worth exactly what I am charging for it.

Member Avatar Teacherman1 (41.39) Submitted: 11/12/2011 4:01:56 PM
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Announced earnings and a $0.30 dividend on or about Nov.29 to holders of record as of Nov. 21.

You will have the first 3 or 4 days of next week to buy if you are interested.

It was up to $11.04 after hours, and even at that price it had an annualized yield of almost 11%.

It is reasonable to assume that investors would still be interested at a yield of 7% to 8%, which would give it a reasonable price of $15 to $17 per share.

I'm not saying it will go there, but it will likely rise more next week.

For those of you who bought "cheaply", there is an opportunity to sell half, or less of your position, and hold the balance for future dividends with the equivalent of a zero cost basis.

JMO and worth exactly what I am charging for it.

Member Avatar Teacherman1 (41.39) Submitted: 11/30/2011 1:58:13 PM
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Got my $0.30 a share dividend today and sold 25% of my position, to lock in a 39% profit in about 8 weeks.

Will watch to see what happens next. I am curious to see if people will still buy in at this price, and if so, how low the dividend will go before they decide the price is high enough.

I expect the drop today (at least as I am writing this), has to do with the fact that many sell right after the dividend.

Even at today's price, it is still yielding over 11.5%, which is a pretty healthy dividend.

While their quarterly dividend is twice what DCIX is paying, DCIX has a slightly better current yield, and a much stronger balance sheet.

As I have stated in my blogs on DCIX, I think it has a much better share appreciation future than TEU, but that is primarily because TEU has already gone up quite a bit in the past couple of months, while DCIX has stayed around the $5.00 range for a time.

If anyone is concerned that DCIX is "stuck in a rut", remember, for right now, the market is being made by a hand full of day traders with the average volume at about three tenths of one percent of the float. It is probably even less, because they are llikely buying and selling the same shares more than once a day.

I think the institutional investors (most of whom are in at about $7.50), are content to just collect their dividends. Even at the $7.50 price, it is still yielding about 8%.

When the various financial websites get their yield and financials updated and correct, I expect it to gain visibility and start going up from here.

Their balance sheet is extremely strong.

DIX is a good buy right now, and could be even a better one if the price goes down a little after the dividend date, as stocks tend to do.

JMO and worth exactly what I am charging for it.

Member Avatar Teacherman1 (41.39) Submitted: 12/7/2011 1:53:35 PM
Recs: 0

Sold another 25% (based on my original position) yesterday to lock in a 32% profit. Have now averaged just under 36% profit in 9 weeks.

Will hold the rest for awhile to see if TEU has a further upside around Q4 report and dividend time.

I still like the company, just wanted to make sure I had some "tucked away", in case we suddenly go back to a "schitzo" market.

Member Avatar Teacherman1 (41.39) Submitted: 1/12/2012 3:10:52 PM
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Keep coming on down and I will buy some more.

They are not quite the deal they were, but they will still be paying a dividend of $0.30 for the 4th and 1st quarters.

After that, we will have to wait and see.

I already have a good profit locked in from selling half of my previous holdings.

Member Avatar Teacherman1 (41.39) Submitted: 1/18/2012 11:57:50 AM
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This is starting to look attractive again, at least for the intermediate term.

If it drops down much more, I will probably buy back the shares I sold last month for a 30% plus profit.

It will be interesting to see what is happening with them when they release their Q4 report, but they have already stated that at least for the next 2 quarters, they will continue to pay the $0.30 dividend.

Could be a good "swing trade".

JMO and worth exactly what I am charging for it.

Member Avatar Teacherman1 (41.39) Submitted: 2/16/2012 6:48:32 PM
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Here is a link to the Q4 and year end report from PR Newswire, fromYahoo Financial page for TEU.

They earned $0.38 per share and will pay a $0.30 per share dividend on March 2, to holders as of February 27.

Haven't looked at the detailed information from their site yet.

They will be holding a conference call after the close of the market tomorrow, February 17.

Need to look at this one closely to see if I want to continue to hold all or part of my remaining shares after the dividend is paid, because they reiterated that they expect the full year, 2012 dividend to be $1.00, which means the quarterly dividend will be decreasing in the 2nd half.

Still a good yield, even at the after market price of almost $9 per share, but not as good as it was.

Member Avatar Teacherman1 (41.39) Submitted: 2/27/2012 10:06:13 AM
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I think there may be some investors pulling the trigger a day too soon.

Not sure if today, or tomorrow is the exdividend date.

Member Avatar Teacherman1 (41.39) Submitted: 2/28/2012 12:30:57 PM
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I will probably be saying goodbye to this one in the not to distant future, but think it is a little oversold right now.

This often happens right after the dividend is paid and the exchange lowers the opening price to reflect that.

This sudden downward movement tends to feed upon itself.

Also, Maresk made some comments about the market for container ships, so that helped to push the sector down even more.

The $0.30 should be good for the next quarter, and it still has a great yield, so I expect it will come back up some in the next week or so.

If it goes low enough, it might even be a good entry point again.

JMO and worth exactly what I am charging for it.

Member Avatar Teacherman1 (41.39) Submitted: 3/1/2012 12:47:01 PM
Recs: 0

Collected my last dividend and sold today.

Will put them on my watchlist to see what develops and if another buying opportunity presents itself.

While they are paying a good dividend, that is expected to decrease later in the year, and for now I don't think there is a whole lot of share appreciation left in the intermediate term.

JMO and worth exactly what I am charging for it.

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