Friday, December 20, 2013

The company has increased the quarterly dividend 135% over the past six years and pays a generous 5.


Great sea containers for sale advice, but with bonds plunging on higher rates and stocks bouncing higher as the rest of the market becomes greedy, what is an investor to do? Being fearful means bond losses, but being greedy means leaving yourself open to the next market sell-off.
Of all the sectors to feel the weight of the Great Recession, shipping sea containers for sale may have been the hardest hit. Global trade plummeted 23% in 2009 for a loss of $3.8 trillion in import value, the biggest one-year sea containers for sale drop on record. sea containers for sale
Trade bounced briefly but fell again last year as weak global growth held back exports. Unlike the rest of the market, which has fought through concerns of sluggish global growth to post returns of 15% since the beginning of the year, global shipping has been falling like a rock since February and is down double digits.
Stronger Trade And Higher Prices Ahead Real GDP in the 17 economies of the eurozone grew by a 1.2% annualized rate in the second quarter after six consecutive quarterly declines. Even better for shipping companies is that real exports of goods and services sea containers for sale exploded higher at a 6.8% annualized rate.
A jump in August export orders helped push China's purchasing managers' sea containers for sale index to its highest level since May. Exports increased 7.7% over the previous year, well ahead of the 3.8% growth reported in July.
A rebound sea containers for sale in global trade should lead to some decent gains for investors in the general sector, but I wouldn't sea containers for sale spend all my time analyzing sea containers for sale stocks for decent gains. I only invest sea containers for sale a small percentage of my personal portfolio in stocks with strong upside. I want to see returns of 20% or more a year.
Management Missteps Textainer Group Holdings Limited (NYSE:TGH) is one of the most heavily shorted in the sector, with traders sea containers for sale betting on further weakness ahead and institutional investors neglecting the shares. This widespread pessimism is not completely without merit. Management made some missteps last year and didn't manage the company's cost structure well. While revenue grew by 15%, cost of goods jumped by 29% and operating expenses surged by 37%, which sent profitability margins down hard.
But the company is also being beaten down for doing the right thing. Management has taken advantage of weak global trade and lower asset prices to double its annual investments in property and equipment. This should translate to a huge boost to cash flow and income when exports turnaround. sea containers for sale Cash flow could also see support when the company scales back capital expenditures from the current buying binge.
The company almost doubled its long-term debt outstanding last year to $2.2 billion. While an abrupt increase in debt always raises a few eyebrows, the move was a smart decision considering a return on equity above 23% and interest rates around sea containers for sale 5% on debt.
The company sea containers for sale derives more than half (56%) of its revenue from Asia and one-third (32%) from Europe. sea containers for sale More than 75% of the company's containers are on long-term leases, making future sea containers for sale cash flow fairly easy to predict.
The company has increased the quarterly dividend 135% over the past six years and pays a generous 5.4% yield. In fact, investors buying the shares on the IPO in 2007 would now be receiving an 11% cash return on their original investment and a total return of 187%.
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