Oeystein Kalleklev, CEO of Flex LNG (FLNG), a leading ultramodern LNG shipping company, joined J Mintzmyer's Value Investor's Edge Live on June 10, 2021, to discuss the LNG shipping markets and capital allocation priorities for Flex LNG. Flex has set an upsized dividend level of $0.40/qtr and appears set to support this payout, and potentially even higher payouts, due to excellent time charter fixtures. Despite this progress, FLNG still trades at a significant discount to NAV if we utilize newbuild asset parity, which I estimate at nearly $20/sh. This implies over 45% of equity upside in addition to a nearly 12% income yield. FLNG is likely to raise the dividend even further by late 2021! This interview and discussion of the underlying LNG global markets is relevant for anyone with LNG shipping or LNG export infrastructure investments, including Cheniere (LNG), Cheniere Partners (CQP), GasLog Partners (GLOP), Golar LNG (GLNG), Hoegh LNG Partners (HMLP), Teekay LNG Partners (TGP), and Tellurian (TELL). Topics Covered (3:00) What is driving the strength in LNG markets? (9:00) What is the spread between MEGI/XDF and TFDE rates? (12:00) Any additional charter coverage planned? (14:00) Any appetite or opportunity for fleet growth? (17:30) Potential to increase share purchase authorization levels? (21:00) Commentary on dividend program and sustainability. (23:45) What are the primary risks in this market? (28:00) Any impacts/risk to upcoming regulations? Any benefits? (33:00) Technical difference between ME-GI, ME-GA, and X-DF designs? (38:30) Any concern about the LNG orderbook? Qatar orders? (47:15) Commentary on recent interest rate swap transactions? (52:30) What differentiates FLNG from peers and other shipping firms? Learn more about your ad choices. Visit megaphone.fm/adchoices

Marketplace Roundtable

Value Investor's Edge Live #43: Flex LNG: Surging Cash Flows And Dividends

Hugo De Stoop, CEO of Euronav (EURN), a leading crude tanker company, joined J Mintzmyer's Value Investor's Edge Live on June 9, 2021, to discuss the crude tanker markets, recovery trajectory, and capital allocation priorities for Euronav. This interview and discussion is relevant for anyone with crude tanker or product tanker investments, including Ardmore Shipping (ASC), Diamond S Shipping (DSSI), DHT Holdings (DHT), Frontline (FRO), International Seaways (INSW), Navios Maritime Acquisition (NNA), Nordic American Tankers (NAT), Scorpio Tankers (STNG), Teekay Tankers (TNK), Tsakos Energy Navigation (TNP) and Torm (TRMD). Although it may seem a bit dated since this interview was conducted about two months ago, very little has changed in the crude tanker markets since we last chatted, so the content should be useful for all investors interested in Euronav or the overall sector. It's worth noting that the emergence of the Delta variant has effectively pushed back the crude tanker recovery scenario by at least 2-3 months so far, so even though the big picture situation is similar, the turnaround timing has been pushed back a bit further. Euronav is set to report Q2-21 results on Thursday, Aug. 12, with a conference call at 0800 EST. This interview should act as a useful primer before these results. Topics Covered (2:00) Current state of the crude tanker market? Past the bottom yet? (5:00) Impact of Iran sanctions coming off soon? (9:00) Any concerns about the current tanker orderbook? (13:45) How do current environmental proposals impact EURN? (19:45) Economics of investing in environmentally friendly upgrades? (24:00) Are scrubber retrofits attractive here with larger spreads? (25:45) Environmental impact from copper-oxide hull paints? (27:30) Will 2023 EEXI impact EURN? Risks of divesting older ships? (33:45) Any risk of exposure to future ‘green recycling’ requirements? (36:30) What are Euronav’s current capital allocation priorities? (41:30) Any plan to address adverse tax-withholding from dividends? (44:45) Update on ULCC assets? (47:00) Commentary on FSO JV? Any divestment potential? (50:30) Why invest in EURN versus peers? Differentiation? Learn more about your ad choices. Visit megaphone.fm/adchoices

Value Investor's Edge Live #42: Tanker Market Updates From Euronav

Constantin Baack, CEO of MPC Containers (OTCPK:MPZZF), a leading small-sized containership lessor, joined J Mintzmyer's Value Investor's Edge Live in June 2021 to discuss the surging containership markets and company strategy to benefit from these elevated market levels. Although MPCC is not currently listed in the US markets, there's sufficient trading liquidity on the Oslo Exchange under the stock symbol "MPCC" and they're considering a potential US-listing if market conditions remain favorable and their market capitalization exceeds $1B. For more particular information on MPC Containers, I highly recommend reviewing their latest investor presentation, which was updated on June 22. MPCC is set to publish Q2-21 earnings results on Aug. 19. For readers and listeners primarily interested in US-listed names, the primary comps include Atlas Corp. (ATCO), Costamare (CMRE), Danaos Corp (DAC), Euroseas (ESEA), Global Ship Lease (GSL), and Navios Maritime Partners (NMM). Included market content should be relevant for investors in all of these names. Topics Covered (1:45) What is primarily driving the market strength? How long can it last? (4:15) What are the primary risks for investors to watch? (10:45) How large is the discount for 2-3 year charters versus 1y quotes? (12:45) The Harpex index is due for a massive upward revision?! (15:15) How far in advance are you fixing your vessels? (18:00) Are there any opportunities to acquire more secondhand tonnage? (21:00) Any clear negatives to recent containership transactions? (23:45) Plans for a dividend? Expected timeline for first payout? (26:15) Current economics for newbuild tonnage for feeders/midsize? (30:30) Upcoming impact from 2023 EEXI and/or bunker fuel tax? (34:30) Any impact/concern due to the increased focus on ‘green recycling?’ (37:15) Current economics from scrubbers? Any plans to add more? (41:15) What differentiates MPCC? Why choose this stock over others? (44:00) Future plans for a US listing? Learn more about your ad choices. Visit megaphone.fm/adchoices

Value Investor's Edge Live #41: Market Insights From MPC Container Ships

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Value Investor's Edge Live #42: (TRMD)

Ted Young, CFO of Dorian LPG (LPG), joined J Mintzmyer's Value Investor's Edge Live on June 11, 2021, to discuss the LPG shipping markets and specific company prospects and capital allocation potentials. This interview and discussion is relevant for anyone with LPG sector investments, including Avance Gas (OTCPK:AVACF), BW LPG (OTCPK:BWLLF), Navigator Holdings (NVGS), and Stealth Gas (GASS). Topics Covered (1:45) Overview of the current and mid-term LPG markets. (7:00) Any concern about the increasing VLGC orderbook? (9:45) Discussion about impending environmental regulations. (11:15) Interest in LPG dual-fuel retrofits? Economics? (15:30) Are rising steel prices impacting newbuild costs? (19:30) Will US LPG production, inventory, and export levels improve? (22:30) Update on scrubber program economics. (24:15) Are you interested in divesting the oldest 3 vessels? (26:45) Views on target leverage and minimum cash balance? (30:15) Appetite for more repurchases? Tender offer? (31:30) Any concern about share liquidity? (34:45) Potential for a new repurchase authorization? (35:45) Any additional impact from EEXI or other initiatives? (40:30) Any impact from the removal of Iran sanctions? (42:30) Impact from more OPEC oil and NGL exports? (45:00) Potential for a dividend? Structure? Special vs. regular? (49:15) Why choose Dorian over other VLGC peers? Learn more about your ad choices. Visit megaphone.fm/adchoices

Value Investor's Edge Live #40: Dorian LPG: Surging Returns To Shareholders

Value Investor's Edge Live #43: (FLNG)

Value Investor's Edge Live #45: (SB)

John Wobbensmith, CEO of Genco Shipping (GNK), a dry bulk shipping company, joined J Mintzmyer's Value Investor's Edge Live on 25 June 2021 to discuss the strong market outlook and company specific plans for capital allocation and shareholder returns. GNK is benefiting from surging rates and is expected to report a strong Q2 earnings report followed by an even stronger showing in Q3. Although market conditions can change and dry bulk is notoriously volatile, the supply side is the most bullish we have seen in 20-plus years and the signals from demand are also encouraging, particularly in the midsize and smaller segments, which are reviewed in detail in this update. Perhaps of most interest to shareholders is Genco's plan to begin massive dividend payouts once target leverage is achieved. GNK's officially stated plan is to begin these large payouts after Q4-2021 results (i.e. in early-2022). However, market conditions have been very strong, so there's a potential for GNK to start to move even faster. With current market rates and GNK's stated dividend policy, we could theoretically see yields of 30% or higher against current share prices. This interview contains relevant insights for investors in all other dry bulk companies, including 2020 Bulkers (Oslo: 2020), Diana Shipping (DSX), Eagle Bulk (EGLE), Eurodry (EDRY), Golden Ocean (GOGL), Grindrod Shipping (GRIN), Navios Partners (NMM), Pangaea Logistics (PANL), Safe Bulkers (SB), Seanergy Maritime (SHIP), and Star Bulk Carriers (SBLK). Topics Covered (2:00) Dry bulk market overview (8:00) Differences between midsize and Capesize markets? (12:30) Any clear impact from upcoming environmental regulations? (15:45) Views on ammonia or LNG-dual fuel designs? (17:15) Any interest in newbuild assets or resale tonnage? (19:15) Any other growth potential? (22:30) Potential to raise the dividend sooner due to strong markets? (25:15) Dividend structure? Potential to pay even in weak markets? (27:45) Views on low leverage? Optionality to increase it? (30:15) Any desire to add time-charter coverage in this market? (32:00) Review of scrubber program and economics. (34:30) Why choose Genco Shipping (GNK) as the favored dry bulk play? Learn more about your ad choices. Visit megaphone.fm/adchoices

Value Investor's Edge Live #39: Dry Bulk Cash Machine - Genco Shipping Update

Value Investor's Edge Live #39: (DAC)

Value Investor's Edge Live #40: (EURN)

Value Investor's Edge Live #44: (LPG)

The CEO and CCO of Global Ship Lease (GSL), Ian Webber and Tom Lister, joined J Mintzmyer's Value Investor's Edge Live on 11 June, 2021, to discuss the containership transport markets and forward opportunities in the markets. We also covered GSL's major acquisition of 12 containerships, which took place in early June. GSL guided for at least $1.09 in annualized EPS contribution from this latest purchase. However, with containership rates continuing to surge, I suspect GSL guided too low on the first deal and I would anticipate a minimum of $1.50 in annualized earnings contribution from those ships once they are fully delivered by the end of Q3 2021. This interview and discussion of the underlying containership markets is relevant for anyone with interest in GSL or in related containership shipping companies, including Atlas Corp (ATCO), Capital Partners (CPLP), Costamare (CMRE), Danaos Corp (DAC), Euroseas (ESEA), Matson (MATX), MPC Containers (OTCPK:MPZZF), Navios Partners (NMM), SFL Corp (SFL), and Zim Integrated Shipping (ZIM). Surging Containership RatesContainership leasing rates have been on a surge over the past year and we have seen subsequent all-time record highs set for each of the past six weeks. The latest Harpex Index is shown below, which reflects the benchmark rates for one-year charters: Source: Harper Petersen, Harpex Index, 5-Year Chart Massive Earnings Growth, Stock Stuck in Neutral?Subsequent to this interview (which was conducted on 11 June), Global Ship Lease announced yet another vessel acquisition deal on 16 June, which added four more vessels to their fleet. GSL anticipates the four latest ships will add an additional $0.88 in annual EPS, which is in addition to the $1.09 they guided from the first major acquisition in early June (but I expect closer to $1.50 contribution). Altogether, these latest two deals in June alone should add up to $2.40/sh in annualized earnings potential on top of GSL's organic fleet contribution levels. However, despite this fleet and earnings growth, GSL stock has been stuck in neutral over the past six months, up just 15% since January and down more than 20% from peaks in mid-June. This may present a phenomenal opportunity for investors who are interested in this sector, but either way, I hope the interview will help add additional color about this firm.  Source: Google Finance, GSL 6-month chart, 8 July 2021 Topics Covered (2:00) What is driving the surge in rates, how sustainable are they? (6:30) What charter durations are preferable? Discount rates? (9:00) Any potential for forward fixtures into 2022? (12:30) What assumptions play into the economics of the new purchase? (18:45) Target leverage for the latest acquisition? (20:45) Any appetite for further vessel acquisition deals? (24:00) Not many public company buyers… Private asset buyers? (26:30) Split between charter-free values and charter discounts? (30:15) Economic tradeoff between secondhand and newbuilds? (33:00) Do smaller and midsize ships play a viable role in the future? (38:15) Will environmental regulations threaten middleaged tonnage? (47:45) What is your target balance sheet leverage? (51:00) GSL has a higher average cost of debt: savings potential? (55:30) Any appetite for more preferred equity? Learn more about your ad choices. Visit megaphone.fm/adchoices

Value Investor's Edge Live #38: Global Ship Lease: Racking Up Container Profits

Value Investor's Edge Live #38: (DAC)

G﻿ary Vogel, CEO of Eagle Bulk Shipping (EGLE), a dry bulk shipping company focused on the mid-sized segments, joined J Mintzmyer's Value Investor's Edge Live on 9 June 2021 to discuss the rapidly improving market outlook and company specific plans. EGLE is benefiting from surging rates and is expected to report a blow out Q2 earnings report followed by an even stronger showing in Q3. Although market conditions can change and dry bulk is notoriously volatile, the supply side is the most bullish we have seen in 20+ years and the signals from demand are also encouraging. Gary talks through the markets in our interview as well as about capital allocation specifics and strategy for Eagle Bulk in particular.  This interview contains relevant insights for investors in all other dry bulk companies, including: 2020 Bulkers (Oslo: 2020), Diana Shipping (DSX), Eagle Bulk (EGLE), Eurodry (EDRY) Genco Shipping (GNK), Golden Ocean (GOGL), Grindrod Shipping (GRIN), Navios Partners (NMM), Pangaea Logistics (PANL), Safe Bulkers (SB), Seanergy Maritime (SHIP), and Star Bulk Carriers (SBLK). Topics Covered (0:00) Introductions and disclosures (1:40) What is driving the steady strength in midsize dry bulk markets? (4:15) What is the impact of the Australia-China coal shifts? (5:30) Why are Capesizes far more volatile at this time? (7:15) Why are 2022 FFAs still considerably below current market levels? (9:30) Any activity or inquiries in the longer-term charter market? (12:15) Discussion on rate hedging via derivatives. (13:45) Capital allocation priorities? Target leverage? (16:30) Commentary on ATM facility? Usage here? (19:00) Potential for a dividend policy/program? (21:00) Improving share liquidity? Lack of options trading? (23:00) Potential for further sector consolidation? (24:45) Impact from EEXI or tonnage tax? (28:30) Current scrubber spreads? Plans to hedge savings? (32:00) Discussion on proper benchmark for rates. (34:15) What are the major risk factors at this point? (38:30) When are potential newbuild yard slots available? (40:30) Any desire to lock in 1-year rates yet? (42:30) Why choose to invest in EGLE vs. peers? Learn more about your ad choices. Visit megaphone.fm/adchoices

Value Investor's Edge Live #37: Midsize Dry Bulk Surge: Insights From Eagle Bulk

The Marketplace Roundtable Podcast features interviews with our Marketplace authors about their investing approach, views on the market today, and some of their favorite investing ideas. The Seeking Alpha Marketplace is a platform for investing services that helps investors take their investing to the next level. Authors provide exclusive ideas, subscriber chat rooms, model portfolios, and one-on-one access with subscribers. In these interviews, you’ll hear how these authors approach their investing and how they try to improve their process and results over time, and hopefully it will give you a few ideas for how to raise your investing game.

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Marketplace Roundtable

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