gaf63
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Posts posted by gaf63
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Great line Partner, I'm in total agreement
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If this is a soft market, I surely would not like to see the results of a hard market in the costs for my personal insurance.
State Farm raised my H.O. (3 yr. old house) by 18% at end of Sept, as well an increase in EQ ins from the state. Just now received an increase in personal liability policy of 13.3%. Have had no claims for as long as I can remember.
Anyone else experience such price hikes? Or can it be that State Farm is trying to make up for bad investments from the last couple of yrs. GAF
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Thanks JR, great notes, and a wonderful , fun, and insightful interview
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Twacowfca,
the usual convoluted US fed tax form , in this case 1116, which with my itemized deductions and total income , came up with 5% of my total tax liability. This amount was the foreign tax credit, and it was 58.4% of the Canadian withholding. So a little over half was returned. There is a line on form 1116 for carryover , but do not know if I will receive any with my income.
GAF
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Txlaw,
The Canadian govt. withholds 15% of the div. On the fed tax return, there is a foreign tax credit to recover this amt. It didnt
cover the whole amt. but there was a carryover to next yr.
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Tooskinneejs, thanks for the info on Scottrade,
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Article from Hellenic shipping news on container shipping, good news about intra Asian trade:
" there have been bright spots over the past quarter, Mr Kolding said. Among them are the surprising strong growth in imports into Asia from Europe and the rise in intra-Asia trade. The backhaul volumes have been so strong in the third quarter that there has actually been a container deficit on the trade."
You bet correctly Uccmal
full article:
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=73536&Itemid=79
Another on over capacity
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=73536&Itemid=79
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<IV , yes I'm sure Gerry and co. would monitor closely any activity that could increase dry dock expenses. Also I didn't get a sense of endorsement from what was said on the CC. Only that more would be said in coming quarters.
Twacowfca, from what I gather at super slow steaming there is possibility of engine damage. The problem arises in that the responsibility for maintenance, dry dock exps.(time out of service and costs of repair) is SSW's. The liners pay the fuel costs and would receive the savings of sss. So it is a positive for the environment, for the liners in fuel costs savings, and in more ships put to work.
The point is SSW needs to monitor sss closely because when the ships are in dry dock and out of service they do not receive their daily fees from the liners.
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Thanks from me as well <IV,
As to super slow steaming , the phrase that stood out for me is "if monitored and executed correctly" , referring to a 10% load.
For the liners , they save in fuel costs but dont have the responsibility for the down time, engine maintenance.
If Maersk wishes to put their own ships at risk over a longer time period, fine. But, if there is a possibility of engine damage, SSW needs to be very careful about allowing super slow steaming on their ships.
GAF
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As to price movement: when I first bought FFH in 2006 I was continually flabbergasted at large price movements for seemingly
no reason, but after looking at it for over 3 yrs. now I am resigned to these moves. Still amazes me tho.
GAF
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"For What Its Worth" by Buffalo Springfield
Love that song but have to credit wikipedia to remember name
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Deep Water/Dennis Washington ups holdings in SSW by another 458K shs.
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SSW closes the next $100 million of preferred shares , few mos. early than original Dec. timing
Seaspan Closes Second Tranche of Series A Preferred Shares
HONG KONG, CHINA, Oct 1, 2009 (Marketwire via COMTEX News Network) -- Seaspan Corporation (NYSE:SSW) (the "Company") announced today the closing of the second and final tranche of $100 million aggregate amount of 12% Cumulative Preferred Shares-Series A, par value $0.01 per share (the "Preferred Shares"), pursuant to a preferred stock purchase agreement dated January 22, 2009 (the "Purchase Agreement") among the Company, Dennis R. Washington, Kevin L. Washington, Kyle R. Washington, who is the Company's chairman, and Graham Porter, through Deep Water Holdings, LLC, CopperLion Capital (KLW) I Limited Partnership, CopperLion Capital (KRW) I Limited Partnership and Tiger Container Shipping Co. Ltd., respectively (collectively, the "Investors"). Under the terms of the Purchase Agreement, the Preferred Shares were to be issued in two equal tranches of $100 million. The first tranche closed on January 30, 2009. At today's closing, the Company issued and sold 100,000 Preferred Shares to the Investors.
Gerry Wang, Chief Executive Officer of Seaspan, commented, "We appreciate the strong support our sponsors continue to demonstrate for the Company and its strategy. With the closing of the $200 million preferred issuance, we have further improved Seaspan's capital structure and strengthened its financial flexibility. Importantly, cash retained from operations combined with secured committed financing provide for nearly all of the capital needed to finance our contracted fleet growth."
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Here is the wording from the prospectus for the series A pfd. :
We may not redeem the series A preferred shares before October 20, 2010, except that we may redeem the series A preferred shares before that date at a redemption price of $26 per share, plus declared and unpaid dividends, if any, to the date of redemption, if we are required to submit to the holders of our common stock a proposal for any matter that requires, as a result of a change in Delaware law after the date of this prospectus supplement, for its validation or effectuation an affirmative vote of the holders of the series A preferred shares at the time outstanding, whether voting as a separate series or together with any other series or class of preferred stock as a single class.
So does the takeover require the votes of pfd. holders?
Can anyone decipher the above??
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JEast, looking at SSW buying discounted ships,
While prices are heavily discounted it seems to me that it would be a negative for SSW at this point
Postives: new ships for <50% of cost, much higher op. margin and cash flow over time
negatives: with SSW's m.o., need to find liner to operate , and their charter cos. are asking to delay deliveries,
would have to discount day rates to present low rates to attract liners, at least for the next few yrs. with an escalation clause once rates go up again(could be a positive if an escalation clause possible)
They need cash flow to finance ships on order, and the delay options will cost them up to $19 mil for 11 ships
If they keep the equity of ships at 65%, another $10 mil plus, maybe they can get 100% financing at such low prices??
And if they offer new ships at lower rates what would keep liners from continuing delays on ship orders that have much higher day rates
SSW would need to cover the interest on new ships til the market recovers and they need all the cash flow they have at moment.
More financing from the Washington's possibly??? Sure would be a great opportunity long term , but short term difficult
JEast and <IV,
What are your thoughts on the above , and if I'm off base in my thinking I'd appreciate correction
Thanks, Gary
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Rejected new builds for sale , low bids of $20 mil for a 6500 TEU ship,
SSW is paying $77.3 for 5100 TEU ships, so figure original cost north of $90 mil
So the bargains are out there, wonder if SSW will participate
From Lloyd's List:
IRISL boxships attract $20m bids from bargain hunters
Janet Porter - Wednesday 23 September 2009
BIDS as low as $20m apiece are rumoured to have been offered for three 6,500 teu newbuildings that are up for sale after the original buyer failed to complete the purchase, writes Janet Porter
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One of the interested parties is said to be Neptune Orient Lines, although the listed Singapore line declined to comment yesterday.
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First I want to thank JEast and <IV for your calling attention to SSW and for your excellent write ups/analysis.
2nd, there was an article in the FT this weekend on shipping ,dry bulk, but with interesting comments concerning long term charters and
timing on buying ships. The individual thinks that the beginning of 2010 should be the most opportune time for picking up ships at good value.
http://www.ft.com/cms/s/0/ed834a0e-a470-11de-92d4-00144feabdc0.html?nclick_check=1
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SSW takes delivery of its 41st ship
Seaspan Takes Delivery of Forty-First Containership on Twelve-Year Time Charter to China Shipping
Delivery of CSCL Manzanillo Marks Successful Completion of Series of Eight 2500 TEU Container Ships
Press Release
Source: Seaspan Corporation
On Monday September 21, 2009, 9:15 am EDT
HONG KONG, CHINA--(Marketwire - 09/21/09) - Seaspan Corporation (NYSE:SSW - News) announced today that it accepted delivery of the CSCL Manzanillo from Jiangsu Yangzijiang Shipbuilding Co., Ltd., on September 18, 2009. The 2500 TEU containership is Seaspan's sixth newbuilding in 2009 and expands the Company's fleet to 41 vessels. The CSCL Manzanillo is chartered to China Shipping Container Lines (Asia) Co., Ltd., under a twelve-year, fixed-rate time charter that requires CSCL Asia to pay all fuel, cargo-operating and related costs. Upon delivery of Seaspan's full fleet of 68 vessels, the Company's contracted revenue stream is expected to grow to approximately $7 billion and its annual revenue is anticipated to rise to approximately $700 million.
Gerry Wang, Chief Executive Officer of Seaspan, said, "With the delivery of the CSCL Manzanillo, we have successfully completed the construction and delivery of the series of eight 2500 TEU vessels. We are pleased to have partnered with both Jiangsu Yangzijiang Shipbuilding and CSCL to provide this leading Chinese liner with modern, state-of-the-art vessels that continue to meet high performance standards. We look forward to continuing to grow our fleet and contracted revenue stream as we take delivery of 27 remaining newbuildings."
About Seaspan
Seaspan owns containerships and charters them pursuant to long-term fixed-rate charters. Seaspan's contracted fleet of 68 containerships consists of 41 containerships in operation and 27 containerships to be delivered over approximately the next three years. Seaspan's operating fleet of 41 vessels has an average age of approximately five years and an average remaining charter period of approximately seven years. All of the 27 vessels to be delivered to Seaspan are already committed to long-term time charters averaging approximately 11 years in duration from delivery. Seaspan's customer base consists of seven of the world's largest liner companies, including China Shipping Container Lines, A.P. Moller-Maersk, Mitsui O.S.K. Lines, Hapag-Lloyd, COSCO Container Lines, K-Line and CSAV.
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Add to the part timers and those not looking for work the employees of the UC system who have been given pay cuts/furloughs that amount to 7-10% of wages. These cuts affect admin , staff and faculty. Not unemployed but with a lot less discretionary income.
"Recession over" say many
Not likely, and not in Calif.
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Call price for ORHpA before Oct. 2010 is 26. Today it is trading over 25 and 20,000 shs have changed hands up to 11:15. So it seems a decision has been made on the preferred's. Was hoping they would exchange these into FFH debt or leave as is.
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From Bloomberg with a little more on the reason for the upgrade,
Seaspan Corp. (SSW US) advanced 3.7 percent to $9.90 after jumping as much as 14 percent, the most intraday since March 4. The Hong-Kong-based shipper was upgraded to “buy” from “underperform” by Bank of America Corp., which cited price increases by peers and a second consecutive monthly increase in shipping volume at the port of Los Angeles.
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There is some more info I'd like to add to <IV's post. Referring to the over capacity of container ships , and the earnings decline of the liners.
Two lines, CSAV and HL-USA have asked SSW to review and possibly change their charters. The asian lines have made no such requests.
CSAV which has taken two ships this year and is due to take 2 more, asked for help. SSW said no to revisions , and since CSAV has restructured with German ship owners and continues to pay on original SSW charter party. CSAV has probably delayed the next 2 ships, but that is hard to know because SSW doesnt release who has delayed deliveries.
HL-USA has asked for meetings with SSW to look at contracts also. They have 9 ships with SSW of which 4 are into 1 yr. renewals and the other 5 will go into the 1 yr. renewal soon. They must give a 2 yr. notice to cancel these charters or pay a penalty. (The penalty will cover a yrs. revenue on each ship).
It appears ;that Hapaag Lloyd will receive a bailout from the German govt. which should improve HL-USA'S liquidity. Will know in a week or so.
SSW has taken a charge of 1 mil for delay penalties for 11 ships, and there are 2 more that have come up since 6-30. The liners are losing money and prob. will continue to for the foreseeable future but are honoring their contracts at this time. HL-USA could renege on their contracts or some of them but it would cost them a lot. SSW could lose up to 6.5 mil rev./yr. on each ship.
So, while the container industry is going thru tough times, SSW appears to be handling the situation.
The next few yrs. are not without risk however , until trade and rates improve. I'll collect 6% plus on the div. while waiting, and probably add more to my position if it drops back, GAF
Should be getting a presser some time soon - Annual Dividend
in Fairfax Financial
Posted
Guessing that it will be a min. of $10, possibly slightly higher