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($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
Some things in life are hard and other things are easy. Bench pressing 400 lbs is hard. But picking winning stocks is easy…at least if you’re $$$MR. MARKET$$$. One thing is for sure, when you want to get stuff from A to B in the world, the best way to do it is to put it on a container ship. The container shipping industry is expected to grow in the coming years, with a number of factors contributing to this outlook. The container shipping fleet is expected to grow 9.6% year-on-year by the end of 2024, and another 5.5% year-on-year by the end of 2025. This is the fastest rate of growth since 2011 to 2013. Things can get tricky. The Middle East is a dangerous place to conduct shipping, and as a result the ships can charge whatever they want to move the cargoes. The Houthis' attacks on ships in the Red Sea have led to a diversion away from the area. This has increased demand for ships. Cargo volumes will grow 4-5% in 2024 and 3-4% in 2025. This growth, on top of the price increases for shipping, will lead to robust profits for shipping companies. See? That was easy.
Today I bought Euroseas Ltd (ESEA) at 50.22. I will sell it in 4 to 6 weeks at 58.01. Here’s why I like ESEA. First of all, look at this great chart:
This stock is up 83% in the last 12 months, yet its PE is only 3. That’s right, three! It literally cannot go down in price it’s so cheap. On top of that, this company pays a 4.8% dividend so even if you hold it for a long time, you can’t go wrong. It’s a no brainer. This stock is so cheap it trades below its net asset value, which means if it just sold all of its ships today, its stock price would climb.
Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables. As of March 31, 2024, it had a fleet of 20 containerships with a cargo carrying capacity of approximately 777,749 dwt. The company was incorporated in 2005 and is based in Marousi, Greece. The only other famous Greek I know was Spiros Arion.
Here’s some more tidbits on ESEA. Its share price is up a spectacular 732% in the last half decade, a handsome return for long term holders. The good news is that its EPS growth is exceeding its share price growth, that’s why the PE is so cheap, so the stock price has A LOT of catching up to do.
The container shipping market has experienced significant gains in 2024, with freight rates climbing sharply to their highest levels outside of the COVID-19 period and charter rates steadily rising to historically robust levels. These strong market conditions are primarily driven by the aforementioned disruptions in the Red Sea and subsequent impacts, with vessels diverting around the Cape of Good Hope, resulting in increased vessel demand and port congestion. Also, healthy container volumes are supported by an ongoing rising world economy.
• Freight rates have surged, and charter rates have significantly risen, doubling from mid-December levels and reaching their highest point outside of the Covid-19 pandemic and the strong markets in 2004-2005
Let’s take a look at those earnings which were reported on August 6, 2024
Second Quarter 2024 Financial Highlights:
• Total net revenues of $58.7 million. Net income of $40.7 million or $5.89 and $5.84 earnings per share
basic and diluted, respectively. Adjusted net income for the period was $34.3 million or $4.95 and
$4.92 per share basic and diluted.
• Declared a quarterly dividend of $0.60 per share for the second quarter of 2024 payable on or about
September 17, 2024, to shareholders of record on September 9, 2024, as part of the Company’s
common stock dividend plan.
• As of August 6, 2024, the company repurchased 400,705 shares of common stock in open market
The outlook for shipping over the next 6 months is extremely bright and at this valuation, you simply cannot go wrong. Prices for shipping are going up and utilization of the EASE is at or near capacity. It’s going to make a lot more money in the next 6 months.
Aristides Pittas, Chairman and CEO of Euroseas commented:
“We are very pleased to report our results for the second quarter of 2024 which are the best we recorded in recent years. Also, we are pleased to have welcomed through the second quarter and in early July 2024, four more of our nine vessel newbuilding program with the remaining two vessels scheduled to be delivered to us in January 2025.
“The second quarter was a good quarter for the containership markets, with charter rates continuing their increase and on average [more than doubling] over their levels at the end of 2023, a trend clearly evident in the charter rates and contract periods we secured for our own vessels. In any event, we believe that with charter coverage of about 75% over the next twelve months, we are sufficiently insulated from market developments. We hope that we will also be able to re-charter the few vessels opening up this year at levels around the current ones further strengthening our forward cover. We, thus, focus on appropriately managing the cash flow our charter contracts generate. We continue returning funds to our shareholders via our dividend program offering an annual yield of about 6.5% at current share price levels and a share repurchase program as our stock trades below our net asset value. Furthermore, we are diligently looking for and evaluating accretive investment opportunities.”
Tasos Aslidis, Chief Financial Officer of Euroseas commented: “Within the second quarter of 2024 the container charter market has improved as compared to the first quarter of the year. Our results for the second quarter of 2024 are significantly higher compared to the same period of 2023. This was the result of the higher average number of vessels operating (we operated 21.26 vessels during the second quarter of 2024 versus 17.95 vessels during the same period of last year) and the increased time charter equivalent rate our vessels earned during the second quarter of 2024 compared to the same period of last year. On a per-vessel-per-day basis, our vessels earned a 4.9% higher average charter rate in the second quarter of 2024 as compared to the same period of 2023. Our net revenues increased to $58.7 million in the second quarter of 2024 compared to $47.7 million during the same period of last year.
Diving into these numbers makes this a really safe bet, but at the end of the day, $$$MR. MARKET$$ is going sailing into another stock winner. That was EASY…no it was ESEA! I am HUGE!!
By the way, if you end up profiting from this stock pick, please think about donating some of your profits to any Hurricane Helene relief fund of your choice. Thanks
www.mrmarketishuge.com
Some things in life are hard and other things are easy. Bench pressing 400 lbs is hard. But picking winning stocks is easy…at least if you’re $$$MR. MARKET$$$. One thing is for sure, when you want to get stuff from A to B in the world, the best way to do it is to put it on a container ship. The container shipping industry is expected to grow in the coming years, with a number of factors contributing to this outlook. The container shipping fleet is expected to grow 9.6% year-on-year by the end of 2024, and another 5.5% year-on-year by the end of 2025. This is the fastest rate of growth since 2011 to 2013. Things can get tricky. The Middle East is a dangerous place to conduct shipping, and as a result the ships can charge whatever they want to move the cargoes. The Houthis' attacks on ships in the Red Sea have led to a diversion away from the area. This has increased demand for ships. Cargo volumes will grow 4-5% in 2024 and 3-4% in 2025. This growth, on top of the price increases for shipping, will lead to robust profits for shipping companies. See? That was easy.
Today I bought Euroseas Ltd (ESEA) at 50.22. I will sell it in 4 to 6 weeks at 58.01. Here’s why I like ESEA. First of all, look at this great chart:
This stock is up 83% in the last 12 months, yet its PE is only 3. That’s right, three! It literally cannot go down in price it’s so cheap. On top of that, this company pays a 4.8% dividend so even if you hold it for a long time, you can’t go wrong. It’s a no brainer. This stock is so cheap it trades below its net asset value, which means if it just sold all of its ships today, its stock price would climb.
Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables. As of March 31, 2024, it had a fleet of 20 containerships with a cargo carrying capacity of approximately 777,749 dwt. The company was incorporated in 2005 and is based in Marousi, Greece. The only other famous Greek I know was Spiros Arion.
Here’s some more tidbits on ESEA. Its share price is up a spectacular 732% in the last half decade, a handsome return for long term holders. The good news is that its EPS growth is exceeding its share price growth, that’s why the PE is so cheap, so the stock price has A LOT of catching up to do.
The container shipping market has experienced significant gains in 2024, with freight rates climbing sharply to their highest levels outside of the COVID-19 period and charter rates steadily rising to historically robust levels. These strong market conditions are primarily driven by the aforementioned disruptions in the Red Sea and subsequent impacts, with vessels diverting around the Cape of Good Hope, resulting in increased vessel demand and port congestion. Also, healthy container volumes are supported by an ongoing rising world economy.
• Freight rates have surged, and charter rates have significantly risen, doubling from mid-December levels and reaching their highest point outside of the Covid-19 pandemic and the strong markets in 2004-2005
Let’s take a look at those earnings which were reported on August 6, 2024
Second Quarter 2024 Financial Highlights:
• Total net revenues of $58.7 million. Net income of $40.7 million or $5.89 and $5.84 earnings per share
basic and diluted, respectively. Adjusted net income for the period was $34.3 million or $4.95 and
$4.92 per share basic and diluted.
• Declared a quarterly dividend of $0.60 per share for the second quarter of 2024 payable on or about
September 17, 2024, to shareholders of record on September 9, 2024, as part of the Company’s
common stock dividend plan.
• As of August 6, 2024, the company repurchased 400,705 shares of common stock in open market
The outlook for shipping over the next 6 months is extremely bright and at this valuation, you simply cannot go wrong. Prices for shipping are going up and utilization of the EASE is at or near capacity. It’s going to make a lot more money in the next 6 months.
Aristides Pittas, Chairman and CEO of Euroseas commented:
“We are very pleased to report our results for the second quarter of 2024 which are the best we recorded in recent years. Also, we are pleased to have welcomed through the second quarter and in early July 2024, four more of our nine vessel newbuilding program with the remaining two vessels scheduled to be delivered to us in January 2025.
“The second quarter was a good quarter for the containership markets, with charter rates continuing their increase and on average [more than doubling] over their levels at the end of 2023, a trend clearly evident in the charter rates and contract periods we secured for our own vessels. In any event, we believe that with charter coverage of about 75% over the next twelve months, we are sufficiently insulated from market developments. We hope that we will also be able to re-charter the few vessels opening up this year at levels around the current ones further strengthening our forward cover. We, thus, focus on appropriately managing the cash flow our charter contracts generate. We continue returning funds to our shareholders via our dividend program offering an annual yield of about 6.5% at current share price levels and a share repurchase program as our stock trades below our net asset value. Furthermore, we are diligently looking for and evaluating accretive investment opportunities.”
Tasos Aslidis, Chief Financial Officer of Euroseas commented: “Within the second quarter of 2024 the container charter market has improved as compared to the first quarter of the year. Our results for the second quarter of 2024 are significantly higher compared to the same period of 2023. This was the result of the higher average number of vessels operating (we operated 21.26 vessels during the second quarter of 2024 versus 17.95 vessels during the same period of last year) and the increased time charter equivalent rate our vessels earned during the second quarter of 2024 compared to the same period of last year. On a per-vessel-per-day basis, our vessels earned a 4.9% higher average charter rate in the second quarter of 2024 as compared to the same period of 2023. Our net revenues increased to $58.7 million in the second quarter of 2024 compared to $47.7 million during the same period of last year.
Diving into these numbers makes this a really safe bet, but at the end of the day, $$$MR. MARKET$$ is going sailing into another stock winner. That was EASY…no it was ESEA! I am HUGE!!
By the way, if you end up profiting from this stock pick, please think about donating some of your profits to any Hurricane Helene relief fund of your choice. Thanks
www.mrmarketishuge.com
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