We Have Added the Ocean Ship Owner Preferred Stock Page

With the hammering that some of the ocean shipping common and preferred stocks have taken in the last month it seemed a good time to launch the Ocean Shipper preferred stock page.

Here you can find a listing of all the preferred stock issues outstanding for the shippers.

At this time we would identify the issues from GasLog LNG Partners (GLOP) as those likely offering the best values.  Disclosure–we own shares in the new issue from GLOP—the GLOP-C (corrected) 8.5% fixed-to-floating rate issue.

We implore all potential investors in ALL of these issues do plenty of due diligence as NONE of these issues are investment grade and each of them contains plenty of risk – in particular if the global economy goes soft.

16 thoughts on “We Have Added the Ocean Ship Owner Preferred Stock Page”

  1. Tim, you mentioned in the posting that you own GLOP-C, but I thought you had said at an earlier time that you went into GLOUF, which would be GLOP-C??

      1. Hi G–sorry for the typo–I own the new issue ‘c’. Unfortunately as it is tumbling.

  2. I’m lower risk tolerance, so prefer the short term baby bonds of STNG and SSW in a qualified retirement plan. They have decent YTM and YTC with maturities 6/1/19 and 4/30/19 respectively.

    1. Hi Warren–I think that is a reasonable choice and low risk given the short dated maturities.

  3. Thanks for the addition Tim…having a page to look up and compare shipping issues will be helpful. Shipping preferred shares may not be for everyone, but if you’re careful and patient you can do quite well (SSW-G for example).

    1. Lots more to come–I am going to try to add the baby bonds in on the same page.

  4. I have always avoided these companies.. maybe the LNG shippers like GasLog and Hoegh are worthy of a peek.. our friend Rubicon Associates writes about them and his article on HMLP-PA (Hoegh, a corp/ 1099 no K-1) had me put that one on my watch list..

    the trade war has affected a lot of shipping quite a bit, the Baltic Dry Index is down from 1750 in July to 1003…

    1. Yes Bea–I have mostly avoided, but tiptoed into the new GasLog Partners issue with a thought of maybe ‘flipping’. Well so far I am down just a little bit, but if markets stabilize it should be fine (I hope).

      The LNG carriers should be fine for about 2 years after which I think a couple hundred more ships will be on the water–at which point I won’t even consider them as they are really outside my normal conservative wheelhouse.

  5. Great idea. I consider investments in shipping companies so risky that ALL my holdings in this area are in preferreds (GLOGprA, SSWprH, DLNGprB). In addition to having to consider the global economy, you also need to watch shipping rates even in good times because these guys have a strong tendency in good times to order more ships which results in overcapacity which causes shipping rates to crash.

    1. Jerseyvinny–correct. Their inability to simply operate a fleet profitably they always have new builds on order–which normally are complete about the time we hit a recession. I just stick to the strongest of them–and even that is a rare event for me.

  6. Tim, which will come first you think…The next Ice Age, or an investment grade preferred from a shipper? Sleep on that question, lol.

    1. Grid, the vast majority of the ocean shipping industry corporations are a mess. There is just too much debt being taken on by very fragile companies. Is there a blue chip in the industry? I can’t think of one that I would want to give a portion of my longer term portfolio to, can you? The day rates have wild swings and it seems like there is always a need to buy more or build more ships, all while their balance sheets deteriorate. And the older ships are virtually worthless. Wishing you profitable investing, Nomad

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