Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, containership charter owner Global Ship Lease (NYSE: GSL ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Global Ship's business and see what CAPS investors are saying about the stock right now.
Global Ship facts
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Headquarters
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London, U.K.
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Market Cap
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$181.9 million
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Industry
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Shipping
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Trailing-12-Month Revenue
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$156.3 million
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Management
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CEO Ian Webber (since 2008)
CFO Susan Cook (since 2008)
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Trailing-12-Month Return on Equity
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2.1%
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Annual Revenue Growth (Over Past Year)
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28.7%
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Cash/Debt
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$31.3 million / $647.6 million
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Competitors
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Seaspan (NYSE: SSW )
Danaos (NYSE: DAC )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 53 members who have rated Global Ship believe the stock will outperform the S&P 500 going forward. These bulls include IntelligentAsset and newglarus22.
Just last month, IntelligentAsset tapped Global Ship as an easy outperformer because of its "solid balance sheet and long-term charter revenues and caps on operating expenses and a desire to give out dividends in the near future."
Global Ship, along with fellow containership stocks Danaos and Seaspan, remain highly rated plays on the triumphant turnaround of global trade. Unlike dry-bulk shippers like Excel Maritime (NYSE: EXM ) or Frontline (NYSE: FRO ) , containerships transport the consumer "stuff" we know and love (electronic gadgets, toys, household goods, etc.), particularly from China. In fact, just one week ago, Seaspan was singled out as an "11 O'Clock Stock" for its young fleet, tremendous cash flow generation, and tasty dividend yield. While Global Ship had to halt its distributions in the face of the downturn, management expects to resume distributions after Nov. 30, 2010, making it an attractive future income opportunity.
CAPS member newglarus22 sums it up:
Cash flows generated are too steady to trade below $3 for long. Long-term charters will remain viable. ... Simply put, [Global Ship] is too good to be true at today's price of $2.45, even with the restriction on dividend payments. I would set a target price of $4.50 by the end of 2010 and a long-term target of $8 in the next 24 months.
What do you think about Global Ship, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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