Costamare E Series Undervalued Despite Mean Reversion

Summary

  • We revisit after a long time the models we made on CMRE.PE to update it for the current environment where we are beginning to see recessionary pressures.
  • Reversion to the mean is happening now with idle rates trending upwards from global lows and charter rates seeing pressure.
  • The containership market is still strong but it's the dry bulk market where we are starting to see some pressure.
  • Pressures from China, but also from Europe macro, as well as general slowdown in the commodity environment, present issues, but charter durations are still long.
  • Share repurchases are reducing dividend burden to common stock as well, and overall we think CMRE.PE is undervalued.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »
Container ship TITAN

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The Costamare E Series Preferreds (NYSE:CMRE.PE) are ones that we covered some years ago. Technically they did overperform since then, but we think that the preferreds trading below par now is a little unnecessary as it gives substantial margin over the

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This article was written by

Author of The Value Lab
A long-only voice with eclipsing growth through 2020 and 2022 bear markets.

Valkyrie Trading Society seeks to provide a consistent and honest voice through this blog and our Marketplace Service, the Value Lab, with a focus on high conviction and obscure developed market ideas.

DISCLOSURE: All of our articles and communications, including on the Value Lab, are only opinions and should not be treated as investment advice. We are not investment advisors. Consult an investment professional and take care to do your own due diligence.

DISCLOSURE: Some of Valkyrie's former and/or current members also have contributed individually or through shared accounts on Seeking Alpha. Currently: Guney Kaya contributes on his own now, and members have contributed on Mare Evidence Lab.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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