Greg Zikos, CFO of Costamare, joined Value Investor's Edge Live.
The discussion covered overall containership markets, looking at demand concerns along with forward orderbook levels and the potential for LNG-fuel ships.
It also went over CMRE's approach to discliplined growth, their leverage targets, and how they're thinking about their dividend.
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Greg Zikos, CFO of Costamare (CMRE) joined J Mintzmyer and Value Investor's Edge to discuss the containership markets and specific company prospects and capital allocation priorities. This interview and discussion is relevant for anyone with containership investments or interests, including Capital Product Partners (CPLP), Danaos Corp. (DAC), Global Ship Lease (GSL), Navios Maritime Containers (NMCI), and Seaspan Corp. (SSW).
- 1:25 minute mark - Market review: Strong rates vs. Trade War Concern.
- 5:45 - What is your scrubber plan for IMO 2020? Approach for capital spending?
- 9:45 - What are the biggest risks/concerns for this market?
- 12:15 - How does the supply-side look? Concerned about newbuilds?
- 14:15 - Have you seen any interest in LNG-fueled ship transactions?
- 16:10 - What is the most attractive area to invest in for containerships?
- 18:35 - What are your current leverage levels and long-term targets?
- 23:15 - What are your priorities for capital allocation? Dividends?
- 26:35 - Ready to raise the dividend yet, or need more growth?
- 28:55 - How are the longer-term charter markets shaping up?
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: J Mintzmyer is long CPLP, GSL, and NMCI. Greg Zikos is employed by Costamare. Nothing on this podcast should be taken as investment advice.