Surging Containership Rates: MPC Containers Update (OTCMKTS:MPZZF)

Summary

Value Investor's Edge Live continues with this latest episode focused on the small-sized containership segment of the shipping industry.
MPC Containers is one of the largest publicly-traded containership companies by vessel count.
MPCC is considering a US listing later in the year and will be initiating a dividend policy during 2020. Their thoughts are very relevant for other US-listed peers.
We interviewed MPCC CEO Constantin Baack in early February to review the containership markets and to learn more about their strategy.
The full interview recording and transcript is included below. Our MPCC fair value estimate is NOK 10.00.
This idea was discussed in more depth with members of my private investing community, Value Investor's Edge. Get started today »

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Constantin Baack, CEO of MPC Containers (OTCPK:MPZZF), a leading small-sized containership lessor, joined J Mintzmyer's Value Investor's Edge Live on 9 February 2021 to discuss this segment of the surging containership markets.

MPCC is one of our current top picks at Value Investor's Edge, and is significantly benefiting from surging rates. Although it's not currently listed in the US markets, there's sufficient trading liquidity on the Oslo Exchange ("MPCC") and they are considering a potential US-listing if market conditions remain favorable throughout the year.

For more particular information on MPC Containers, I highly recommend reviewing their latest earnings presentation, which was published on 25 February. Their full Q4-20 financial report is also linked.

For readers and listeners primarily interested in US-listed names, the primary comps include: Atlas Corp. (ATCO), Capital Product Partners (CPLP), Costamare (CMRE), Euroseas (ESEA), Global Ship Lease (GSL), Navios Maritime Containers (NMCI), Navios Maritime Partners (NMM), and SFL Corp. (SFL). The content from this interview should be relevant for investors in all of these names.

Topics Covered

(<1:00): Intro/Disclosures
(1:00): What is driving the recent strength in smaller containerships?
(4:30): Strategy for the charterbook? Durations vs. rate levels?
(7:20): Discount level of one-year vs. two-year charters?
(8:30): Structure of the MPCC pool with 15 ships? Plans for charter cover?
(9:45): Any plans for a US-listing? Is the IPO market available?
(11:45): Dividend plans and potential policy structure?
(14:30): Capital allocation priorities into mid-2021? Asset purchases?
(16:45): Are accretive asset purchase opportunities still available?
(19:45): Any differentiation of interest within smaller-sized ships?
(22:15): Merger and consolidation opportunities in this sector?
(25:00): What is the typical ROE for recent acquisitions? Unlevered?
(27:50): Some of the latest fixture examples?
(28:45): How long can the current charter strength last?

Full Transcript:

J Mintzmyer: Good morning, everybody. Welcome to another iteration of Value Investor’s Edge Live. Today we are hosting CEO Constantin Baack, who leads MPC Containers, which is a leading small sized containership firm positioned over in Norway. We're recording on the morning of 9 February, about 08:30 Eastern Time.

As a reminder, nothing on this call constitutes investment advice nor official company guidance. I have a long position in MPC Containers which trades on the Oslo Exchange MPCC. Constantin, good morning. Thank you for joining us today.

Constantin Baack: Hi, J. Thanks for having me. My pleasure.

JM: Absolutely. Just some disclosures before we begin, MPC Containers has released a presentation with lots of updates on their fleet, but they have not yet presented their full quarterly results. So, we'll make sure none of our discussions directly involve reported results that haven't come out yet. Constantin again, welcome. Thanks for joining us.

CB: Sure, thanks.

JM: Yeah. So, we've covered the containership sector, of course on Value Investor’s Edge for years, but we mostly focused on the mid-size or some of the larger tonnage, we haven't spent as much time focusing on the feeder ships and some of the baby Panamaxes and the race have been kind of in the doldrums for several years. But that's changed.

Last fall, the rates started picking up, and the last couple of months the acceleration has actually increased. And I was just, I wanted to bring you on today to talk about this and to focus on what is driving some of this recent containership strength, especially in your segment in those smaller ships.

CB: Sure, I mean, first of all, if you look at the recent containership developments, the situation is obviously rather complex, given the macroeconomic aspects that have turned out over the last couple of months. However, if I had to drill that down on three key aspects, firstly, there's clearly some degree of ketchup effect having taken place and still taking place, combined with an ongoing strong demand, which is, amongst others a result of the shift in consumer behavior.

E-commerce means people do not just restock 200%, they there are other stock to 300%, because it's all about lead time. So that's a very important factor. And then obviously, the COVID situation and people spending more money on goods than services is also a very relevant contributor. Furthermore, equipment shortages, and I'm sure that's basically all over the media.

So, nothing is specifically new. But I think it's worth noting that these equipment shortages are not just boxes and chassis switches, obviously known, but it's also ships. I mean, we look at it record low idling figures. And there's basically no free capacity left. And that's across sizes. It was obviously initially more present for the larger sizes, but it has trickled down to the smaller sizes. And we're basically at above 99% utilization at the moment in terms of tonnage capacity.

And then last but not least, I think congestions have played an [ph] exaggeration role, especially in the U.S., I'm sure you're well aware of that. And U.S. ports in general are way more dependent on people and less on automation, compared to for example, our European ports. And in some instances where LA and Long Beach port workers were affected with COVID as they contracted COVID. And was pretty much an exaggeration of the anyway, severe situation.

So, these are a few attributes that clearly play a role. And then there's obviously the longer term but I'm sure we'll get to that fundamentals in terms of supply and demand, but I will leave it there for the moment and I'm sure we touch on that as well.

JM: Yeah, it's certainly exciting times across the market and we saw it pick up first, in some of the mid-size tonnage. It seemed like that was where the supply and demand had been the tightest, there hadn't been a lot of orders for really since, like 2012, there haven't been a lot of mid-sized orders, and then it trickled down. And now, of course, the feeder ships are rallying.

And, you put out a new presentation just last week, which is kind of what got my additional attention into your company. We bought your stock a couple of weeks ago, and looked into this presentation and saw that you've positioned really about more than half your fleet has rolled on to these new charters. And we're talking about significant rate increases.

I mean, there's a -- I'm just looking at some of the roles right now. And I see one ship, for example, that went from $6,000 a day up to $13,000. And of course, that's not an isolated case. It's across the board. So, as you're focusing on those charter roles, is there a strategy in terms of do you want to put everything on the one-and two-year charters? Do you want to kind of layer those in? Or how do you think about managing that charter book now that you have better rates?

CB: Well first of all, I think it's besides the improved rates, very important is also the improve periods. And that's kind of differentiator between the smaller tonnage and the larger tonnage. The larger tonnage is usually on at least 12 months, if not three-to-four-year contracts.

Our vessels, however, sometimes only on round voyages for a couple of weeks, so that also means you have more availability to the market. So, tonnage becomes more frequently available to the charter market, putting somewhat of a lid on rates and periods. So that has changed. I mean, we have not just seen this kind of rates that you alluded to, but also periods for 1000 TEU vessels for two years.

This, in turn, will stabilize the charter market going forward, because simply vessels will not become available that frequently. And that's a very positive. To your question on strategy and obviously, we are currently in a position where we can lock in, basically cash-on-cash yields of 30% plus on charters, that go up to two years. So we are, of course, looking at a staggered charter book, which we have inevitably, also by virtue of our fleet, we have 66 ships.

And we have now rolled over more than half of the fleet in the let's say, new normal, so a new charter rate environment or actually even a bit more than half and the rest will follow in the next three to four months. So, we will have a bit of a staggered book, it's to some extent dictated by availability of one, two, or maybe even slightly above two-year charters.

But given the significant cash generation, and we're looking on a blended basis on our basket of vessels, blended if you have those vessels spot today it’s around $14,000 to $15,000 per day, versus cash breakeven on our fleet of $7500 per day. This on an annualized basis translates into an EBITDA of above $140 million, if all vessels would be available. We obviously still have a few, let's say legacy charters, but that is a significant cash generation.

So as long as we don't have to compromise on the rate being at a significant discount, we would in any event, go for as long as possible at these rate levels.

JM: Yeah, that certainly makes sense. And I suppose is then a calculus between how much of a discount do you have to take if you're going to lock it on two years versus one year? Have you been seeing much of a discount on one year or two year? Or is it a similar rate?

CB: The interesting thing is that the rates are increasing on shorter periods and longer periods. We have, for example, seen maybe the two-year market for larger ships to 2000 TEU to 3000 TEU in our case. Two-year charter market standard, right. So, that's you rather get a premium, if you go shorter, I would say. We have for example, six to eight, which has kind of a two-year contract market at around 18 to 20, depending on the region $1,000 per day for two years.

And we fixed for three to four years because of the drydock position at $27,000. So, you see that there's actually a significant premium if you go shorter, and the one-to-two-year contract is market standard. So, it's not a significant discount. And with this kind of level of cash generation, we will definitely want to go long.

JM: Yeah, that certainly makes sense. In your latest update, you have a pool that you mentioned you have 15 vessels operating in this pool and they're mostly the smaller size, 1300, 1500 tonnage. Is there any plans on that pool to lock in more significant coverage on that or is that always going to remain more kind of the spot market?

CB: No, that's also the pool follows pretty much the same strategy. The pool is in total 25 ships so we operate this pool together with another owner. We have a very strong focus and this pool, one reason for this pool is a very basically clear focus on the Caribbean and Latin American region where we operate high refer vessels. And that pool follows the same strategy at this point in time to really focus on longer charters.

But there's a staggered rollover scheme in this pool, inherent in the pool given the existing charter book. So, it would always be a bit staggered. And but we would also go for longer charters on that pool. That's not just a pure spot play either.

JM: Okay, so it's more so different buckets of where the assets are added and how they're accounted and managed not particularly their contact duration. That's…

CB: No, no.

JM: Excellent. So, when I -- right now, today on the call, we have about 20 or so folks, and we'll post the recording up later. And later, the goal is in a week or two, we'll have this out as a podcast. And it'll mostly be to a U.S. audience. So, a lot of folks aren't quite as familiar with MPC and the U.S. markets, because you trade on the Oslo markets. Has there been any interest or desire to get a U.S. listing and kind of attract a larger market base? Or is that something that maybe doesn't make sense at this time?

CB: We actually looked at it quite closely in 2018 before trade war became a bit of a bigger concern, let's put it that way or, basically, early 2019. It's something we definitely have on our roadmap. I think for the time being and where we are at the moment Oslo is not a bad place, it's the second largest Stock Exchange, obviously, a lot of peers, if you want so are listed in the U.S.

However, when looking at the container space and differentiating between line operators and tonnage providers, it's also important to understand the difference between the different tonnage providers and I think we are a bit different in terms of operational leverage and way lower financial leverage. So, unless kind of we develop, and this is the ultimate goal for 2021 into a dividend stock, and which is a clear goal for this year I think that's the point of time when the move to U.S. makes sense. And it's certainly something we have on our bucket list so to say.

JM: Yeah, I think that certainly makes sense. That's kind of logical step for the company. And as you mentioned, I remember meeting you in the summer of 2018. And talking about the prospects of the market, and sentiment was a little better at that point. And then, of course, as you mentioned, we had the trade war, and then we had COVID. And we just haven't had a clear window.

But it seems like if there was ever opportunity, it might be- we won't get too far ahead of ourselves- but might even be this summer, this fall, if these rates remain where they're at. Because as you mentioned, your cash flows are surging. And so, you mentioned dividend, right. And that's something I think that makes investors ears perk up a little bit, and it brings a little bit more folks to the table.

So, let's talk about that a little bit. I know you haven't reported results yet. You don't have an official dividend policy yet. But can you kind of walk us through your thinking as sort of on a company level of how that might look?

CB: Absolutely, I mean, first of all, we obviously 2020 will not be a great year. So, there will be no dividend for 2020. But going forward for 2021. This is clearly the goal to implement a dividend scheme. The idea is really to given the high operational leverage to dividend out a significant part of our free cash flow after CapEx and provisions. So, the goal is around 50% of the kind of free cash flow to be dividend out to investors in future, right.

I mean, we’re obviously now at the crossroads of kind of turning from a very, very bad and challenging 2020, which has been a bit more challenging for companies like us with a significant spot and operational exposure and operational leverage compared to others who just say through the year, but we are also the ones that can most benefit from this upside by renewing basically, all of our fleet within Q4, Q1 and Q2, meaning within three quarters at prolonged rates with good cash generation.

And back to my point earlier on rates, $14,000 a day versus $7500 in cash breakeven. That means, $6500 per day invested in free cash flow and EBITDA. This is very significant and will in all likelihood, put us in a position to pay a dividend in the not-too-distant future. And in addition, and I think that's important, and we have much more visibility on our earnings as we speak. We will have rolled over all the charters and assuming the market moves sideways for the next or maybe even improved but at least we don't expect a softening in the charter market.

By early May, we will basically have contracted to almost all of our revenues for this year, with a significant visibility on cash generation.

JM: That certainly makes sense. And thanks for that early May. So, we'll make sure we set a reminder on our calendar and check the rates in early May. And if they're where they're at today, or in a neighborhood of where they're at today, folks that are listening can check the Harpex index, that's one of the easiest, the context is another one.

Check those rates in May and compare them to February. And if they are in the same neighborhood, then MPC is going to be in great shape. So, let's cross our fingers and hope for that. So, what a turnaround. I mean, last year at this time, MPC was not in a pretty spot, and I wasn't long the stock, but I followed you for many years. And it was you got a little ugly for a while, you had the issues some more equity. There was an issue with one of your bonds, but now you're totally out of the waters.

So, I'm glad to see it. But what are some of your capital allocation priorities now? I mean, you mentioned the dividend, that's got to be part of it. But what about some of that excess cash? Are you thinking of adding a little bit to the fleet? Are there any sort of fleet upgrades that you need to do for environmental standards? What sort of stuff are you doing with the rest of that cash?

CB: Well, first of all, given the significant operational leverage, we believe significant financial leverage is not necessarily needed. So, we would potentially look at slightly delevering the balance sheet financially and with some of the liquidity. And then obviously, selectively, looking at vessel acquisitions. We bought one 3500 TEU ship just recently for $10 million, on which we added basically $6 million of EBITDA with one 14 months contract.

So, that gives you an idea of how you can de-risk in investment. Obviously, the window is very dynamic at the moment. I mean, obviously, asset values follow rates. So, there is a point in time when buying assets doesn't make sense anymore. But at this very moment, it is still something where you can at the same time of buying a ship lock-in very interesting cash flows. And I think this is a very interesting proposition to consider.

In terms of dockings, this year, we have a significant - we have a very high number of dockings, regular class dockings. 18, which is more than average kind of in terms of number linked to the age profile of our fleet. But in terms of capital allocation, it's certainly financially delevering the structure and looking for a dividend as priorities.

JM: Excellent. So, it sounds like the dividend is top of the list and then bringing down some of the leverage. And then maybe the third priority would be selective acquisitions. Is that fair?

CB: Yes.

JM: Excellent. Okay. So, you mentioned that 3000 TEU vessel that you bought for $10 million. And that's remarkable, because the demolition value for that vessel is in that neighborhood, just a couple million below that. So, just buying that vessel, placing it on a one-year charter. Mathematically, it is almost I have to say almost impossible to lose on that deal. That's crazy. So, is there anything like that left in the market or has that second-hand market sort of cleared itself out?

Because I know, I've been looking at this for last couple of months. And I just couldn't understand the deals we were seeing on the asset side? Is there any that left Constantin or is that kind of is that ship sailed?

CB: No, I mean, the prices have picked up, but the charters that you can conclude, for example, for two years match that increase in pricing. The processes are way more competitive, so you need to be very kind of aware of a very competitive market. But again, I mean, 2800 TEU ship you can buy that 10, 12-year-old for $14 million $15 million, and you can lock-in $10 million in EBITDA and are left with scrap post that charter.

So, these deals are still available, more competitive and more limited. But it's still possible to deploy money in this market environment. But and I think that's very important to note, the scarcity of assets becomes even more apparent when looking at who are the buyers at the moment. I mean, MSC Wan Hai, a lot of liner operators who are very concerned about equipment shortages, and that, as I said earlier are not just the boxes, the container boxes, it's also ships.

Over the next two years, there's a very limited supply growth in particular in our segment. So, in the regional vessels up to 5000 TEU there's basically a negative supply growth. And if you order a ship now, it will not be available until 2023. So, the next two years, we have a very clear and transparent visibility on what will come into the market. And there is another change if you look at the overall dynamics of the container market. Very low supply growth in certain segments.

Even if there's only limited demand growth, you will see a continuous tightening in market and this cannot be accelerated, because all this will not come to the market earlier than 2023. And that is, in my book very, very interesting dynamics when you look at the container market, and particularly in the smaller sizes.

JM: Yeah, it's very interesting to see that and a lot of folks earlier last year in March and April of 2020, got roped kind of into this tanker boom, right. Remember, the tanker rates surged really heavily.

CB: Yeah.

JM: But of course, the tanker market had a significant order book remaining at that point. They also had very temporary rates, I mean, these were 30-day, 60-day, 80-day rates. The containership rates are one or two years or longer. And there's really just no supply growth on the horizon. As you mentioned, it might even be negative when you look at some of the demolitions and surveys and upgrade costs.

So, you mentioned less than 5000 TEUs, it's fair to say that's kind of your target area. Is there any more drilling down inside of that? Do you -- Is there a particular niche in the area you're very excited about? Or is it anything under 5000?

CB: No, I mean, we have really focused on - I mean, the feeder market is around 2000 to 2500 vessels globally. We have a very strong focus on the key regional trades, which is by virtue of our position, obviously Intra-Asia as being kind of the most relevant one. And people tend to forget that intra-regional trades, is by far the largest trades, is way larger in terms of deployed capacity and in terms of number of vessels than the mainland trades or the intermediate trades, right.

So, this is basically the backbone of the arteries, so to say, of the container trades globally. So, we focus on Intra-Asian market, Intra-Europe, as well as Intra-Americas. And those are the key areas, obviously, we have also some vessels going on Africa-related trades, et cetera. But it's really mainly intra-regional trade with the focus on these three areas.

And that is also slightly different customer base than our peers, so to say, who worked with the top five, top six liner operators, who have however, especially on intra-regional and some of the feeder trades, they work with regional operators. Unifeeder is one and X-Press Feeders is another one. So very focused regional players and those are our customers as well. So, we obviously have the largest customers of ours is also Maersk and NCMA and APAC and others.

But we basically have a larger portfolio. And we are, I would say much more industrial in the chartering activities and the network that we have on that and compared to some of the peers.

JM: Yeah, it's very interesting niche areas where you operate in. But as you mentioned the global fleet in the small kind of feeder ship, baby Panamax segment is a little bit larger than the larger mid-sized vessels that some of the other vessel companies operate. So, it seems like there's a lot of room left for some sort of consolidation.

I know, there's a lot of German financing vehicles that aren't necessarily particularly natural vessel owners, right? They might want to divest their tonnage or sell off some of their assets. Have you seen any opportunities for consolidation on a meaningful basis? I don't, I don't mean like onesie, twosie vessel acquisitions, but a circumstance where you could acquire a fleet of 20 or 30 or more vessels? Is that even possible?

CB: No, that's definitely not impossible, let's put it that way. And there is some I would call it kind of limited lifetime capital that has bought fleets of 10 to 20 vessels, that could be a good match with kind of our fleet profile. And obviously, at the moment, this would be a market where people who have limited lifetime capital would consider to possibly liquidate their investment, I think it's also a market where you can lock in cash flows. So, the values that are currently present are kind of have underlying cash flow basis, and it's not just an artificial value.

So, I think there is potential to do so. And I think we would be basically one of the natural parties to go through, to entertain the thought of further consolidating the market which in my view, is a very interesting proposition.

JM: Yeah, I think that would be phenomenal if you are able to use your stock as sort of a currency and use some sort of NAV-to-NAV almost a roll up sort of structure. I think Star Bulk Carriers on the book side has done a pretty good job of that. And I feel like you could be a national consolidator in the small size segment.

And it would make such an interesting bridge to come over to the United States market and do an IPO, if you said, Look, we have 100 or even 200 vessels, we are a major consolidator roll up play. It would just make that story so much more interesting. So, it'll be interesting to follow that.

CB: Absolutely. And as I said, I think there's quite some potential on that end. And obviously, using the currency is something that's what you're listed for right to make sure you also arbitrate when the time is right and use your platform to get additional shareholder value.

JM: Yeah, certainly. I've been following your stock. And I update my estimate, of course of the net asset value on a weekly basis. And it's just remarkable to see how quickly the net asset value keeps rising. Just by as we mentioned, right, we talked about how the contracts are getting longer and longer. And so, MPC Containers, the net asset value keeps rising, which makes your potential currency even stronger, to do some sort of a combination transaction like that.

Just for some of the more I think generalist listeners, maybe not so much today, but when we post the recording up later to a larger audience, can you talk about the ROE, the return on equity that you're seeing with some of these vessels? I know, we laid out the numbers like you can buy a ship for $10 million or $15 million, then placed on a $6 million EBITDA charter. But sometimes that's harder to kind of wrap around in your mind. So, what kind of ROE specifically have you been seeing on some of these acquisitions?

CB: I mean, we're looking at 30%, basically, if not more, right. And this is on the current charter level, maybe one example to run the numbers on one ship, $10 million vessel, $5 million equity, $5 million debt and you can you can lock in now annual cash flow of $5 million to $6 million. That's even more, right. And this is one of the larger vessels and what we've just really, really bought. So, there is very, very significant return on equity that you can generate in this market environment.

JM: Right. And that's not even with leverage, right. That's just basically an almost like an ROA [return on asset figure], right?

CB: Yes.

JM: Yeah, I mean, that's phenomenal. That's with basically no leverage in a market environment where you could get 40% or 50% leverage at LIBOR plus 300 or something. So, it's just a remarkable sort of return on these assets. And, of course, that's probably not going to last. So, we hope you get some of that.

CB: No. And that's why I think it's important to also look at, I mean, ship owning, right. Tonnage, provider ship owning is about managing residual value risk, right. And that's why we feel very comfortable in the age bracket in which we are kind of deployed with our capital, which is between 10 and 15 years of age, right.

It's way lower technology risk than younger vessels. We basically, if this market kind of continues, and we are able to lock in two-year charters, we basically de-risk the investment down to scrap, and that differentiates us significantly from various other listed companies, who basically have maybe a longer dividend history and longer contracts.

But at the end of these contracts, there's still significant residual value risk. And I think this is very important when looking at steel investments in my book, at least, and that it's all about managing residual value risk whilst ensuring you are in a position to also return capital to investors.

JM: Yeah, I think that's true. Not only does MPC offer that niche focus on the small vessels, there's also a lot less residual risk, a lot less financial risk, just a completely different situation all right, than you were in a year ago.

CB: Yeah.

JM: So, Constantin thank you so much for your time today. Just a couple quick follow ups, I guess, sound bites, if you will. First of all, do you want to -- do you mind mentioning maybe two or three of your latest fixtures, I know you mentioned them earlier in the interview, but two or three of your latest fixtures that are just indicative of the strong market rates, the ones you've been most proud of?

CB: Sure, I mean, we fixed a 2800 TEU ship for two years at $18,400. This is very significant. We fixed a 1300 TEU at $12,500 for 15 months. And we, for example, fixed just recently 1700 for 16 months to 18 months at $15,000. So, this is again, against a blended cash breakeven of $7500 across the fleet, so a significant cash generation and locked in revenues in particular.

JM: Certainly, certainly impressive. Last question I think, it's probably the question on every investor's mind, how long and I'm going to put you on the spot here I know it's not an easy answer, but how long can this strength last? Because I know a lot of folks at first were thinking Chinese New Year, it's all going to be over. And of course, we're already basically at Chinese New Year. And that's certainly not the case. How long can this last? Is this the three-month, six months? Is it multi-year? What do you think?

CB: I think, it's important to differentiate between the freight market and the charter market, right. The freight market will soften in the course of this year. I'm pretty sure once we have seen the constraints around equipment, et cetera softening a bit, you will not be able to maintain the high freight rates in my view, at least.

However, the charter market and that's the important thing about contract durations. The charter market, the vessels that are now that have been charted since September, October, are all out of the market for at least 12 months, if not more, even in the smaller sizes. So, given that specific feature, the longer this last and the more vessels we fixed for 12 to 24 months, the more stable the charter market will be for a prolonged period of time.

So, I would argue the charter market has way better prospects of being stable than the freight market and hence, this is a benefit for owners. And I personally believe that this will on the basis of the charter coverage, we see the vessels that will become available, which is very, very slim going forward because of the longer periods because of the limited order book. And I expect 2021 and 2022 to be good years for the charter market.

But on the freight market, as I said, so for liner operators, we will see a bit softening in the market, at least in my view and in the course of 2021.

JM: Yeah, I think that makes sense. 2021 is kind of the cyclical peak, if it will, for the actual freight market. But we might be on the cusp. The key word is always might of course, but might be on the cusp of a multi-year run in charter rates.

CB: I agree.

JM: Excellent. So, Constantin, thanks again for joining us this morning. It was very useful, especially as we're getting more and more familiar with your company on the Oslo listing.

CB: Great. Thanks for having me, J. And yeah, if any follow up questions by any of your listeners, reach out, J can tell you where you'll find us and yeah, looking forward to continue the dialogue.

JM: This includes another iteration of Value Investor’s Edge Live. We're recording on the morning of 9 February, about 08:30 Eastern Time. As a reminder, nothing on this call constitutes investment advice nor official company guidance. I have a long position in MPC Containers which trades on the Oslo Exchange MPCC.

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This article was written by

J Mintzmyer

19.9K Followers

J Mintzmyer specializes in deep value stocks in the maritime shipping sector. He has earned a PhD from the Harvard Kennedy School, where he researched sanctions and trade flows. Previously, J earned an MPP from the University of Maryland, worked as a research intern with the White House Council of Economic Advisors, and earned a Bachelors in Economics from the U.S. Air Force Academy.

J is the Founder and Head of Research of the investing group

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, a deep value research community focused on maritime shipping. He leads a team of six analysts and experts who focus exclusively on maritime shipping and related energy infrastructure. The team has delivered consistent outperformance since launch in 2015. It offers exclusive analytics, research reports, earnings coverage, and a live chat with an engaged community of more than 750 members.

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Analyst’s Disclosure: I am/we are long ATCO, DAC, CPLP, MPCC, NMCI, NMM. 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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