We won't recount all details here, but recommend reviewing the press release, presentation, and conference call, all available on Seaspan's Web site. Below, we pull a few slides from recent events:
8:30 AM ET
|Seaspan 4Q 2010 Earnings Conference Call |
4:00 AM ET
|DnB NOR Markets Oil, Offshore & Shipping Conference 2011 |
A few general highlights and observations (click slides to enlarge):
(1) Seaspan's operating strategy is straight forward and clear, which we like -
(2) Management continues to execute on the strategy and the company's in-service fleet and distributable cash flow keeps growing, as originally expected:
(3) Enabling higher dividends, as announced with today's results:
Accordingly, Wall Street continues to embrace the company - from "China Analyst" Analyst Actions this evening:
- Cantor Fitzgerald upgraded Seaspan Corporation (NYSE:SSW) from Hold to Buy, and raised price target from $14 to $18. Lazard Capital Markets reiterated Buy rating and $19 price target on Seaspan Corporation (NYSE:SSW).
- Given the stable business model and growing streams of distributable cash flow, we still believe a more reasonable intrinsic value is between $24-30 per share [or 8-10 times distributable cash flow].... Assuming the global economy keeps growing, we expect shares will once again achieve the $20s-30s even with dilution related to capital raised during the downturn to fund new builds. As "built-in" growth materializes through 2011 and 2012, we expect brokerage "price targets" will consistently bump higher.
Here, Seaspan continues to trade at only six times 2012E distributable cash flow. Moreover, a very capable and incentivized management team is actively pursuing growth opportunities (e.g. JV with Carlyle), and we're confident that Seaspan's ships will be steaming the oceans for the foreseeable future.
We still like the odds and our growing Seaspan income stream.
Disclosure: long SSW.
© 2011 Jeffrey Walkenhorst
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