4-Star Stocks Poised to Pop: Seaspan

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, containership operator Seaspan (NYSE: SSW) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Seaspan's business and see what CAPS investors are saying about the stock right now.

Seaspan facts

Headquarters

Majuro, Marshall Islands

Market Cap

$394.72 million

Industry

Shipping

TTM Revenue

$238.3 million

Management

CEO Gerry Wang (since 2005)
CFO Sai Chu (since 2005)

Compound Annual Revenue Growth (over last three years)

40.6%

Dividend Yield

6.6%

Competitors

Danaos (NYSE: DAC)

CAPS members bullish on SSW also bullish on

Vale (NYSE: VALE)
General Electric (NYSE: GE)
Apple (Nasdaq: AAPL)

CAPS members bearish on SSW also bearish on

Lennar (NYSE: LEN)
Bank of America (NYSE: BAC)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 506 of the 535 members who have rated Seaspan -- some 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include alexsvs and JMJeffrey.

Just last month, alexsvs locked in on Seaspan's attractive long-term moves:

Superior business model of pairing long-term contracts with new ships prior to purchase, minimizing exposure to the spot market. They also cut their dividend in a conservative move from balance sheet management motivation, not from a debt maturity nor from a liquidity crunch perspective.

In a pitch from two weeks later, JMJeffrey expands on Seaspan's international tailwinds:

Big ship passing through! Well a little shipping company trying to capitalize on globalization. I think that the need for this industry (like trains) is not going away and that while capital intensive it will float and rise with expansion global commerce. Recent fear of debt and scaling back of key clients has the market trying to sink this ship, but while I cannot predict the short term I do believe that investors at these prices will be rewarded. Outperform!

What do you think about Seaspan, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 07, 2009, at 1:48 PM, EdgeTrader2001 wrote:

    Anyone looking at Seaspan should also take a look at Global Ship Lease (GSL). The business model is the same and valuations are similar. GSL's primary difference (aside from having a smaller fleet and orderbook) is that it has a single counterparty. In general, this would sound an alarm of concern. However, in GSL's case their counterparty (CMA CGM, the third largest shipper and the flexibility to rapidly downsize its fleet in the current environment) owns 45% of GSL's common stock. As such, they have an incentive for GSL to succeed and to not stick it to GSL. GSL currently trades at less than 2x cash flow per share. Average remaining charter length is 10 years.

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