A New Way for Investors to Sail the Seas

The above table (click on image for full-screen view) presents a Global Maritime BULLISHares Index of companies which must have market caps greater than $500 million US Dollars and derive the majority of their revenues from shipping activities.

The 30 equally-weighted, active component stocks are rebalanced quarterly based on the highest ratings, which are calculated as follows: (a) trailing 52-week stock price performance + (b) dividend yield + (c) percentage of total revenues represented by each company + (d) percentage of total market cap represented by each company.

Global Maritime BULLISHares would provide investors with a new way to sail the seas with strong performance at the last update of 5/5/08, including a dividend yield of 3.9%, a trailing 52-week performance of +57.6%, and an average market cap of $3.4 billion for the 30 active stocks presented above.

 

Comments

[NEH:]

Mike, first, some ownership disclosure please. Second, is this chart from another source, or did you assemble it yourself?

2008 Jul 27 11:04 AM

[Mike Havrilla:]

I don't own any of the shares and all of the research was done by me as a new ETF idea, as with all of the other ETF ideas I have posted.

2008 Jul 27 11:11 AM

[elliot_mllr:]

One problem with the analysis is that it does not take into account the individual characteristics of the companies. There are dry bulkers, wet tankers, LNG tankers and container ships all included in the chart. Within each group there are differences (for example EGLE's fleet is Supramx and Handymax, while GNK's includes Panamax and Capesize) and between groups there are differences (dry bulkers react to the BDI, most tankers are in pools that share profits, etc.). The rate of new building underway is greater for tankers and containers than for dry bulkers and within the dry bulk sphere the rate of new buildings is lower for Supramax than for Capesize and Panamax. Also different is the mix between charter lives and spot. Some, like Frontline, are highly exposed to spot prices. Many dry bulkers have 3-5 year charters and Sea Span has every vessel on the water and in construction subject to 11 year charters (in the case of new-builds, beginning when they are completed).
In short, shipping is too varied an industry to present as a monolith,without differentiation by company and function.

2008 Jul 27 11:37 AM

[Old Trader:]

Elliot,

I'd agree with your assesment, but isn't that the point of an ETF? Allowing an investor to make a "sector bet", without having to decide, for example, if tanker companies relying on the spot market are "smarter" than those that rely on long term charters?

An ETF such as this would allow an investor to play a "macro" theme, (such as growing global trade), while possibly increasing portfolio performance by making judicious investments on individual securities. (For example, buying shares in tanker companies relying on spot markets, if one's analysis on conditions lead one to believe the spot market would be strong over the next 1-2 years).

Just sayin'....

old trader

2008 Jul 27 01:09 PM