Capital Product Partners: It's Cheap But Maybe For A Good Reason

Diesel
3.32K Followers

Summary

  • Capital Product Partners is a marine transportation company with a fleet of ships that transport LNG and other goods.
  • The company faces challenges such as rising debt, dilution, and fixed-rate contracts that limit its ability to benefit from price increases.
  • Despite its cheap valuation and strong growth, the company's issues and the overall underperformance of the marine transportation industry make it a risky investment.

Aerial top view Oil ship tanker or LPG tanker transportation oil from refinery on the sea.

Suriyapong Thongsawang

Capital Product Partners L.P. (CPLP) is a marine transportation company headquartered in Greece and listed on Nasdaq. The company operates a fleet of ships to mostly serve medium- to long-term fixed charter contracts transporting mainly energy products such as

This article was written by

Diesel
3.32K Followers
I own separate portfolios for separate goals. I have one portfolio where I have nothing but income plays, another portfolio where I have nothing but growth stocks. I also have another portfolio where I run my options plays. I try not to mix different portfolios because they all have different goals and purposes. Sometimes one of my portfolios outperform other times other do. I am a big believer of diversification of not only assets but also methods and investment philosophies. Diversification is not simply buying 20 different stocks, it is applying different methods to different goals that fit to serve an investor's short term and long term targets. I am a "long only" investor and stay away from shorting companies. I will also do a lot of delta-neutral options plays where I will try to benefit from a stock or funds lack of movement. Also a huge fan of options plays and strategies including but not limited to covered calls, iron condors, butterflies, calendar spreads, call-put spreads. I've probably tried every options play there is, sometimes with success, sometimes with failure. At Seeking Alpha, I mostly analyze and write about stocks and funds that I own or I plan on owning. I rarely ever write about a stock or fund I at least don't have intention of owning some day.

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