Why Seaspan Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, containership operator Seaspan (NYSE: SSW  ) has earned a coveted five-star ranking.

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

Seaspan facts

Headquarters (Founded)

Hong Kong (2005)

Market Cap

$1.3 billion

Industry

Marine

Trailing-12-Month Revenue

$642.3 million

Management

Co-Founder/Co-Chairman/Co-CEO Gerry Wang
CFO Sai Chu

Return on Equity (Average, Past 3 Years)

(2.1%)

Cash/Debt

$308.5 million / $3.7 billion

Dividend Yield

5.2%

Competitors

Costamere (NYSE: CMRE  )
Danaos
(NYSE: DAC  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 866 members who have rated Seaspan believe the stock will outperform the S&P 500 going forward.

Just this past week, one of those Fools, TheArchivist, succinctly summed up the Seaspan bull case for our community:

Fleet expansion will increase revenues. Still have to wait for charter rates to rise. Long-term contracts might preclude benefiting from this, though. For now, Seaspan looks to be in solid shape even if growth lags a little.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, Seaspan may not be your top choice.

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Read/Post Comments (1) | Recommend This Article (3)

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 April 01, 2013, at 4:20 PM, ajstudebaker wrote:

    "Fleet expansion will increase revenues." True, but it will also require financing. I wonder if the additional EBIDTA will cover the cost of the additional financing, whether that financing is debt or equity.

    I also note that Seaspan doesn't cover the dividend by a lot.

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