Ocean Wilsons (holdings)... Share Discussion Threads

[last of the mohicans] 13/12/2013 01:31

Piedro,

It's a while since I wrote anything on OCN.

Your posts are very useful to say the least, on keeping me up to date.

OCN has failed its shareholders for a number of years now, simply by poor performance, its value (share price )is less than it was in 2010 I think.

Its peak performance was from 2003 to 2007 pre the financial crisis.

Since Wilson&Sons was listed the shares have not done very well - sadly

I never liked the investment portfolio, however the move into private equity looks like it will pay off in the next couple of years.

Just wish they would get rid of the other stuff, but they won't to keep Hansa happy and in effect keep control of the company.

That's why so few people know about it, or see its potential because unless the 2 main shareholders are prepared to contemplate offers, nothing can happen.

The company has invested vast amounts of money into Wilson&Sons over these last few years and if they were getting anything like the return on the money invested (return on capital employed) that they got from 2003-07 then the share price would be way, way higher, as would the pittance that they now pay-out as a dividend.

They have expanded for the future and in time shareholders should eventually be rewarded.

The container terminals are a major part of the underperformance, you just need to look back at the old annual reports to see that. RG is only working around 50% of what it could do, so its profitability is way down on what it could be and its been like that for over 3 years now, even with $200M+ spent on improvements. I'm guessing that it needs to do 40%+ of capacity to simply break-even.

I remember when it was doing 45 moves an hour and working at 120% of optimum capacity and making serious money for the company.

So the quicker they get this terminal to 75%+ of capacity the better for all.

It would be good to see them trying to buy some other container terminals to, even outside Brazil with some of the investment portfolio money to.

I did note a tweet from Wilson&Sons that said last month (October I think) was the second best in RG's history. I presume much of that would be down to these new once a week shipments to Africa. Hopefully this will expand rapidly in 2014.

LOTM

[piedro] 22/11/2013 15:08

tttie,

From my viewpoint, the risk is in what cannot be seen.

At Wilsons, there is much on the web, the ships
and terminals can be followed and the company gives
out plenty of news.

[... EDITED ...]

AIMO, BWDIK

[trytotakeiteasy] 22/11/2013 14:10

Piedro... I can't see why you would want to ditch OCN for Wilson Sons.... given that OCN is at a discount to its assets... also buying Wilson Sons you would have currency costs - maybe 1% each way on a deal.

I think that OCN offsets some of the risk of Wilson Sons given its investment portfolio... However, you could argue that as a pure play Wilson Sons is set to to much better... OCN seem to be rubbish in managing their investment portfolio too.... hood winked by lots of hedge funds..... Phanous Timber fund is one of their holdings..

[piedro] 22/11/2013 10:03

coolen,

I prefer to invest in the company rather than the company of the company (OCN), or the company of the company of the company (HAN), and am awaiting an opportunity to ditch OCN and convert all to WSON

[coolen] 21/11/2013 21:00

Do not forget HANA, and more especially the voting shares HAN,both with a large stake in OCN and trading at a useful discount to nav.

[piedro] 14/11/2013 13:42

offshore ...

November 13, 2013
Brazil's Franco Oil Field May Rival Libra in Size
BY MAREX



The Franco field off the coast of southeastern Brazil could have as much or more oil than the massive Libra field that the government last month sold in an auction to a group of energy companies, oil regulator ANP said on Wednesday.
The Libra field is Brazil's largest oil find, with 8 billion to 12 billion barrels of recoverable oil, according to both the ANP and Dallas-based certification company Degolyer & MacNaugton. .... ....
hxxp://www.maritime-executive.com/article/Brazils-Franco-Oil-Field-May-Rival-Libra-in-Size-2013-11-13/

.... tomorrow's jam ...[edited]

[trytotakeiteasy] 14/11/2013 12:52

Piedro - you have a point on the investment portfolio regarding hedging.. the investment strategy they use for the portfolio is pretty stupid.. hedge funds, obscure trusts.... high fees... they would do better just investing it in a low cost tracker... everyone seems to be copying this Swenson guy from Yale who shoved loads in private equity and outperformed...

Some of the investment portofolio's holdings are dogs... such as Phanous timber fund....

[piedro] 14/11/2013 12:43

2008 - Nov
Wilsons Sons .......... = US$ 6.15/share - £4.10
Investment portfolio .. = US$ 6.20/share - £3.84

2013 - Nov
Wilsons Sons .......... = US$ 14.54/share - £9.12
Investment portfolio .. = US$ 6.89/share - £4.32


There is an exchange variation, but in 5 the years, the valuation of
Wilsons Sons has more than doubled whereas the Investment Portfolio
has been virtually static.

IMO the BoD do not feel safe with Brazil's capabilities and are
hanging onto the IP just in case (hedging).

AIMO

[westcountryboy] 14/11/2013 10:02

Actually it's not shrinking compared to 2010-11 when I started following OCN, rather the reverse. What has shrunk substantially is the sterling value of the Wilsons stake as valued on the Brazilian exchange: a combination of the changes in exchange rates and the general decline in the valuation of Brazilian stocks. Thus the discount to the 'proper' value of OCN is actually smaller than it was when I first invested, though the price is hardly any higher!

[piedro] 14/11/2013 09:37

Very satisfactory statement with the Wilson Sons capex starting to show results.
Investment portfolio up in USD value since the interims but the same in GBD - now only 32% of OCN and shrinking.

AIMO

[trytotakeiteasy] 13/11/2013 21:21

Wilson Sons Quarterly financial results... should be on our RNS tomorrow

[piedro] 12/11/2013 21:04

On the weekend was launched the WSUT's newest PSV, Alcatraz.


pic.twitter.com/ePNZDPkljv

[piedro] 12/11/2013 20:41

The next generation of PSV's ..... for the competition ...

Fourth Damen PSV Delivered to World Wide Supply
Tuesday, November 12, 2013


World Emerald is the fourth in a series of five Damen PSVs to be delivered to World Wide Supply (Photo: Damen)

Four of the six World Wide Supply PSV 3300s have secured long-term contracts supporting Petrobras, offshore Brazil.

[meijiman] 11/11/2013 09:29

I will indeed Piedro.
I was a little confused as to the operations update reference as nothing was shown over the w/e. I now see it is avaialable.Anyway it looks encouraging.
I am inclining to increase my weighting in this share.

[flyfisher] 08/11/2013 21:40

Yes piedro , superb October volume figures released from wson33 after the close.

[piedro] 08/11/2013 21:33

meijiman,

- Seen the latest Operations update?

- From the figures an end of year forecast can be extrapolated

- No need to wait for the World Cup or the Olympics

AIMO,

- if your down that way give me a call.

[meijiman] 06/11/2013 17:04

Piedro -you will no doubt have noted that Brasil has won the world Cup for 2014 and the 2016 Olympic Games. I think OCN will see some higher activity levels from these events.

[meijiman] 05/11/2013 16:12

I have -think this should be around 1200p for fair value. bit of a sleeper.

[piedro] 05/11/2013 13:37

Oh OK !!

I'd better shut up too.


DYOR.

[meijiman] 05/11/2013 12:07

I have done my homework and this is very good value indeed.however, I am going to keep this valuable information to myself.
Not very difficult to model this on NAV basis.
Its a very unusual structure -anyway if you get this far you would be aware of that!!!

[piedro] 25/10/2013 12:16

Great events happening ...

The MSC Maya will call at Tecon Salvador in a trial run to demonstrate a reduction in shipping time for products of the region to the far east from 65 to 33 days by this route

[piedro] 23/10/2013 16:37

Remember the Brasco/Briclog acquisition?

Here's some notes {translations} to put it in perspective ...

- It is estimated that investments in 'pre-salt' over the next 30 years will move US$ 1.7 trillion (c.R$3.7 trillion ) in the country - considering the direct effects on the supply chain of oil and gas, indirect impacts on other segments of the economy and those induced by rising wages of workers.

- The race to exploit the pre-salt has already begun, with orders of 29 drilling rigs and 28 production platforms. Between 2013 and 2017, Petrobras and its partners will invest US$105 billion in pre-salt exploration and production.

- According to Renata Pereira, executive director of Brasco, the company which already operates a base in Guanabara Bay in Niterói, bought a second unit in Caj for R$ 121.9 million. Now will invest R$ 100 million in infrastructure works on site.

- The goal is to be prepared for the opportunities of the pre-salt says Renata noting that the group's shipyard is undergoing expansion.

[piedro] 25/9/2013 21:30

BRIC region still growing strongly
Although Brazil, Russia, India and China are suffering from overheated economies, the BRIC region is still generating attractive cargo growth.
Container traffic loaded and discharged in the BRIC region's ports in the first half of the year grew by an impressive 7.1% year-on-year, up to 90.7 million teu, which is significantly better than North America's 1.2% and Europe's 0% (see Table 1 from Drewry Maritime Research's market intelligence). .... ....

[deepvalueinvestor] 18/9/2013 18:24

It is on my watch list

[piedro] 18/9/2013 16:17

Strange or not so strange?
I've tried over the years to stimulate an interest
in the activities of Wilson Sons but it would seem
none is really interested in what they do do;
interest if any is orientated to backward looking
numbers.

Curious really as the company, as the country, is
quite the opposite and there has been so much
newsflow recently

DYOR,
AGLA