Why Seaspan Is Poised to Keep Soaring

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)

Majuro, Marshall Islands (2005)

Market Cap

$1.4 billion

Industry

Marine

Trailing-12-Month Revenue

$672.3 million

Management

Co-Founder/Co-Chairman/CEO Gerry Wang

Co-Founder/Co-Chairman Kyle Washington

Return on Equity (average, past 3 years)

1.2%

Cash/Debt

$352.4 million / $4.3 billion

Dividend Yield

5.7%

Competitors

Costamere

Danaos

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 yesterday, one of those bulls, TMFChaodan, tapped Seaspan as a particularly attractive income opportunity:

Has lots of cash and higher dividends than the average currently (5.8% compared to average of 3% in the stock market) and is planning on increasing dividends. Its long-term fixed rate charters also play a role in ensuring a steady income stream and cash flow. Not to mention its fleet is newer and more modern than the industry average, giving them an advantage in the next few years or so. The average age of their fleet is 6 years old, compared to industry average of 10 years old. So while everyone is making repairs to their fleets in the coming days, their ships will not be due for repairs yet. Aside from that, they are already purchasing more to add to their fleet.

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

With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery", outlines three companies that could take off when the global economy gains steam. Click here to read the full report!


Read/Post Comments (0) | 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.

Be the first one to comment on this article.

DocumentId: 2558189, ~/Articles/ArticleHandler.aspx, 7/28/2014 4:37:22 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement