Marketplace Roundtable

Gary Vogel, CEO of Eagle Bulk, joined us on 17 January 2023, to discuss the latest trends in the market along with specific company strategy and capital allocation priorities.

Danaos Corp. (NYSE:DAC) CFO, Evangelos Chatzis, joined Value Investor's Edge Live on 16 June 2022 to discuss the current containership leasing markets and capital allocation priorities going forward. DAC has been a massive winner from the ongoing supply chain crisis, but they have taken the long-term view with very responsible moves including comprehensive refinancing, massive deleveraging, and fixing their fleet onto medium- and long-term contracts to lock in sky-high rates. DAC has benefitted from a significant investment in Zim Integrated Shipping (ZIM), which they have partially monetized over the past six months.Despite executing in near-perfect form, DAC stock has been stagnant the past few months and has now fallen back to negative territory y/y. This position is one of our top ideas at Value Investor's Edge, and we were very encouraged by the recent authorization of a $100M share repurchase program. DAC short interest has increased this summer and now looks to be a coiled spring ahead of what is expected to be multiple years of consecutive earnings blowouts amidst surging free cash flows. Our current fair value estimate is $125/sh, which implies around 80% upside to recent trading ranges. This interview and discussion of the underlying containership markets is relevant for anyone with container shipping interests or investments, including firms such as Atlas Corp. (ATCO), Costamare (CMRE), Euroseas (ESEA), Global Ship Lease (GSL), Matson (MATX), Navios Partners (NMM), Textainer Group (TGH), Triton Intl (TRTN), and Zim Integrated Shipping (ZIM).Topics Covered(0:00) Intro/Disclosures(1:45) Update on overall containership leasing markets.(6:00) What is the market missing when selling off all these stocks?(8:15) Any restrictions with the share repurchase program? Available now?(10:15) Why $100M for the repurchase program (vs. more or less)?(11:30) Why not just take the company private?(14:15) Review of stock price vs. enterprise valuation.(17:45) Newbuild strategy and overall approach?(21:45) Target charter durations?(24:15) Planned leverage for newbuild assets?(27:30) When might more newbuilds be added?(33:30) Likely economic return from newbuild transactions (ROE, etc)?(36:15) Any potential for secondhand vessel purchases?(37:30) Potential for more vessel sales? Forward sales?(42:30) Dividend policy: potential for a special div or near-term raise?(44:45) Any changes to ZIM divestment policy?(46:00) Charter nuances with HMM extensions, CMA CGM options, etc.(49:00) Repurchase lock-up? Q2 reporting timeline?

Hamish Norton, President of Star Bulk Carriers (NASDAQ:SBLK), Co-CFOs Christos Begleris and Simos Spyrou, and Head of Research Constantinos Simantiras joined J Mintzmyer's Value Investor's Edge Live on June 8, 2022, to discuss the dry bulk markets and forward prospects and capital allocation. Star Bulk Carriers is the largest US-listed dry bulk company with 128 vessels on the water. We discussed overall dry bulk fundamentals, ranging from China's impact on Capesize markets to the impact of the Ukraine invasion on midsize trade routes in grain and coal. We also reviewed the economics of SBLK's scrubber program and current capital allocation priorities.This interview and discussion is relevant for anyone with dry bulk investments or interest in the overall sector, including Diana Shipping (DSX), Eagle Bulk (EGLE), EuroDry (EDRY), Genco Shipping (GNK), Grindrod Shipping (GRIN), Golden Ocean (GOGL), Navios Maritime Partners (NMM), Pangaea Logistics (PANL), Safe Bulkers (SB), and Seanergy Maritime (SHIP).Topics Covered(0:00) Intro/Disclosures(1:00) Current dry bulk market conditions and prospects?(5:30) More net optimistic or concerned about China developments?(7:30) Midsize has been steady - will Ukraine disruptions threaten rates?(10:00) More bullish vs. our last discussion in January 2022?(11:30) Are asset values getting overextended?(13:45) Are demolition values sustainable or too high?(16:45) How long would it take to order newbuild vessels?(18:00) Scrubber economics? Any desire to lock in the profit spread?(22:00) Capital allocation priorities: Will SBLK be paying down more debt?(25:15) Which dry bulk vessels are currently the most attractive?(27:00) Logic behind the share sale and repurchase arbitrage?(29:00) Any share issuance planned outside of direct asset purchases?(30:00) Potential to repurchase shares? Needed criteria?(32:00) What differentiates SBLK from peers? Why invest here?(36:45) Promising propulsion technologies or other ESG projects?(39:00) Risk of significant share overhang due to large Oaktree position?

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