Comments on: Life Buoy for Water Transportation http://youngandinvested.com/markets-and-economy/life-buoy-for-water-transportation/ THE hub for finance and investing insights from the new generation. Sun, 13 Jun 2010 22:30:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Rob Viglione http://youngandinvested.com/markets-and-economy/life-buoy-for-water-transportation/comment-page-1/#comment-12 Rob Viglione Sat, 27 Dec 2008 20:14:42 +0000 http://youngandinvested.com/?p=123#comment-12 With a div yield of 24% it's tempting to buy into EXM. There's no doubt that shipping will dry up throughout the recession, but a stock's value should reflect all future earnings discounted to present. Right now it seems as though the next 2-3 years are being considered in valuing these firms. With a div yield of 24% it’s tempting to buy into EXM. There’s no doubt that shipping will dry up throughout the recession, but a stock’s value should reflect all future earnings discounted to present. Right now it seems as though the next 2-3 years are being considered in valuing these firms.

]]> By: Daniel Eskin http://youngandinvested.com/markets-and-economy/life-buoy-for-water-transportation/comment-page-1/#comment-7 Daniel Eskin Fri, 24 Oct 2008 00:16:14 +0000 http://youngandinvested.com/?p=123#comment-7 Oh I can for sure agree with that. However, EXM has had a growth rate in their EPS practically every year for the last 7 years. In the first half of 2008, they have already attained a higher EPS figure than the entire year of 2007, so they are definitely growing. We will see if this trend continues through the global conditions as you say. However, in my opinion, a strong company should be growing through recessions still. Third quarter results are coming out on November 6, so stay tuned for that! Oh I can for sure agree with that. However, EXM has had a growth rate in their EPS practically every year for the last 7 years. In the first half of 2008, they have already attained a higher EPS figure than the entire year of 2007, so they are definitely growing. We will see if this trend continues through the global conditions as you say. However, in my opinion, a strong company should be growing through recessions still.

Third quarter results are coming out on November 6, so stay tuned for that!

]]> By: Shishir Nigam http://youngandinvested.com/markets-and-economy/life-buoy-for-water-transportation/comment-page-1/#comment-6 Shishir Nigam Thu, 23 Oct 2008 22:41:38 +0000 http://youngandinvested.com/?p=123#comment-6 Good article! Do have some other thoughts though... While you say that having long-term contracts protects the company against short-term volatility (which is a fair point), the value of the stock is not as much dependent on the existing customer base as it is on GROWTH of that customer base. So I would say that the price of the stock, especially appreciation in the price of the stock, is dependent on getting more shipping contracts, not just maintaining existing ones and that growth is what is being hampered by global conditions. Good article! Do have some other thoughts though…

While you say that having long-term contracts protects the company against short-term volatility (which is a fair point), the value of the stock is not as much dependent on the existing customer base as it is on GROWTH of that customer base. So I would say that the price of the stock, especially appreciation in the price of the stock, is dependent on getting more shipping contracts, not just maintaining existing ones and that growth is what is being hampered by global conditions.

]]> By: Daniel Eskin http://youngandinvested.com/markets-and-economy/life-buoy-for-water-transportation/comment-page-1/#comment-5 Daniel Eskin Thu, 23 Oct 2008 21:07:36 +0000 http://youngandinvested.com/?p=123#comment-5 Hmm, that's really interesting. I didn't actually see that anyway, mind sharing the link? What I really like (and I just edited the article for this), is that they actually have the cash resources to pay off the their bank debt, and for troubled companies like this one, it's often cash to debt that separated the winners from losers. Hmm, that’s really interesting. I didn’t actually see that anyway, mind sharing the link?

What I really like (and I just edited the article for this), is that they actually have the cash resources to pay off the their bank debt, and for troubled companies like this one, it’s often cash to debt that separated the winners from losers.

]]> By: Jay http://youngandinvested.com/markets-and-economy/life-buoy-for-water-transportation/comment-page-1/#comment-4 Jay Thu, 23 Oct 2008 19:11:58 +0000 http://youngandinvested.com/?p=123#comment-4 What if it teleportation does exist? :) On a serious note, I read today that 30% of EXM contracts are not long term and this may cause their earnings to get hit. Hopefully not as I love the dry shippers. They pay excellent dividends! What if it teleportation does exist? :) On a serious note, I read today that 30% of EXM contracts are not long term and this may cause their earnings to get hit. Hopefully not as I love the dry shippers. They pay excellent dividends!

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