This revisit updates my initial look at Costamare, Inc. (NYSE:CMRE) April 27, 2016 article,"
Although it is my hope that you will read the entire article, for which I have provided the link above, my bottom line assessment at the time was as follows:
My bottom line decision is to look at charts of the past few years performance of the company's common shares, coupled with whether or not said company is, over time, prospering or losing market value. Ultimately, I have to decide how safe this company is from an existential standpoint rather than how well its share price will perform over the next quarter or the following year. Ultimately I must decide whether or not I believe in the long-term survivability of CMRE, which I do and have wagered a significant amount of capital on. Should you decide to take the plunge, at this moment the D Series is the best buy.
The price per share of CMRE-D at the close of market on April 27, 2016 was $18.49, and had just lost 0.01 on the previous trading day. How has it fared since then. As I write, its price is $21.87, or 3.38 above what it traded for then. During that three-month period, the investor would have received a dividend of .546875 for a gain of 0.5469/share.
As I suggested, the larger more solid shipping companies will fare better during this rocky patch. Notice that SSW and CMRE, for the past three months, have outperformed their weaker cousins, which is evident in the chart above. And for preferred investors, it's survival that ultimately matters, meaning that SSW and CMRE will still be standing long after the others have fallen, if indeed they are to fall. The peer group as charted above consists of: Global Ship Lease (NYSE:GSL), Seaspan (NYSE:SSW), and Navios Maritime Partners (NYSE:NMM)
Now for a little forward guidance:
According the Finviz summary of CMRE's financial highlights, not surprisingly, this company valued at $692.75 million has, in a terrible environment, actually made a profit of $132.40 million. It is up considerably over the past half year, 46.94%, yet still down slightly -2.86% for the year. It has a manageable short term 1.55 D/E ratio, which is reduced a bit further to 1.34 long term. Another indication of a company built to last.
I wrote this review several days ago and was only waiting for the release of its last quarters financials, which I am gratified to report has lived up to my expectations and the faith I had in this company at the time I wrote the initial article. Faith I backed up with a 3000 share purchase of its preferreds.
The press release, which I have provided the link to, is well worth the read. Cutting to the chase, this company has continued to "deliver solid and profitable results" in a sector badly damaged by low container shipping rates. Yet as I predicted, the larger and more stable companies like CMRE and SSW would handle the downturn while their peers might not. Additionally, Costamare has taken steps to further insure its survival by extending its credit lines through refinancing existing loan facilities and entering into new loan agreements. It has also added to its fleet and has successfully extended long term charter agreements with reliable counter-parties that, as far as I'm concerned, bodes well for this company's future.
And to further solidify its balance sheet, CMRE has instituted a DRIP program designed to keep its coffers full of available cash.
For those of you patient enough to read through to this point, I have added the bonus of determining which of CMRE's preferreds is the best buy at present.
* Although yield-wise The D Series offers the best effective yield at the moment, the B has the largest upside. However, because it offers the lowest coupon rate (cost to company is lowest), it will mos probably be called last. The difference between the C & D at this time is slight, consequently, shifting prices will lead to the best buy of the moment.
For those of you inclined to follow up on my past reviews, I list them below and provide the links to each review.
- Navios Maritime Holdings (NYSE:NM)
- Costamare (NYSE:CMRE)
- Global Ship Lease (NYSE:GSL) and Safe Bulkers (NYSE:SB)
- Gastar Exploration (NYSEMKT:GST)
- Peregrine Pharmaceuticals (NASDAQ:PPHM)
- Ashford Hospitality (NYSE:AHT)
- NorthStar Realty Finance (NYSE:NRF)
- Adcare Health Systems (NYSEMKT:ADK)
- Five Oaks Investment Corp. (NYSE:OAKS)
Disclosure: I am/we are long CMRE-C, CMRE-D, AHT-E, GST-A, NM-G, NM-H, PPHMP, GSL-B, NRF-B, NRF-D, NRF-E.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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