News Content

Seaspan stabilisation complete - 'share price, dividend upside ahead'

SEASPAN Corp, the world's largest containership leasing company, is now far more stable, after it cut its dividend and shifted its corporate structure to be more long-term investor friendly, in the wake of Hanjin Shipping's bankruptcy.

"Despite a strong transition at Seaspan and very bullish forward prospects, the stock price remains depressed as investors are still upset about the temporary dividend reduction," said Value Investor's Edge's Founder, J Mintzmyer, in an article written for New York's Seeking Alpha.

"I am very impressed with the company's transition and it is now one of my top buys. My current fair value price target is US$10/sh, 55 per cent upside," Mr Mintzmyer said in the report.

This report and related research were previously discussed at Value Investor's Edge, "where our first purchase was made at $5.13/sh," said Mr Mintzmyer.

With a fleet of 96 vessels ranging from 2,500 to 14,000 TEU, Seaspan charters its ships to multiple top-tier shipping lines, but the bulk of its long-term exposure is with Asian firms, most of which have heavy government support. Key counterparties include China's Cosco, Taiwan's Yang Ming, MOL and "K" Line. The company also has a set of newbuilds with long-term contracts to MSC.