Braemar Share Discussion Threads

[masurenguy] 18/12/2023 16:32

Thanks for the insight Harry.

[harry davis] 18/12/2023 16:30

A couple of things to flag today

MG, It is the same lark every year, with Clarkson too (although shareholders have not been burdened over the long term. This industry will not change how it pays staff, and broker bonuses (including Gundy) are a huge part of the annual cost structure, it's almost routine. You can try to change it but when so much of the industry is private you are just going to force the top management into the private companies so this is why they say that anyone who speaks to management understand the matters and debates on this. What matters for me is that this sustainably becomes the £18mln targeted normalized EBIT business they are on track to next year.

The Suez Canal situation seems to be worsening, with many other carriers today including Evergreen Shipping and BP also now pausing shipments through the canal and opting for the much longer route around the Cape of Good Hope. I expect this to result in strength in the Baltic Dirty Index (the one that does energy vessels) over the coming weeks. The insurance rates to now navigate the canal is high, and there were more attacks on ships through the Red Sea today

Thirdly, where I am deficient is that I have no insight on the rollover trades! But I am confident Braemar will have a very good 2024!

[masurenguy] 18/12/2023 16:20

Some strange share activity following the AGM today. Also an interesting comment by the Chairman following the significant number of votes opposing the directors remuneration policy and report.

"I am delighted that all of the board's recommended resolutions were supported today by our shareholders, notwithstanding recommended votes against by certain unregulated proxy shareholder companies. These organisations increasingly operate in a non-communicative universe that shows no interest in, nor takes account of, the rationale behind a board's carefully and purposefully formulated policies which, when explained, most shareholders who take the time to engage with the Company, readily accept. The board's policy remains, wherever possible to not take account of shareholder voting that has clearly followed that recommended voting by unregulated proxy shareholders unless there has been direct engagement from the shareholder with the Company". Nigel Payne

UK Corporate Governance Code - statement regarding voting result.

The board notes that although Resolutions 2 & 3 (directors remuneration report and policy) passed with the requisite majorities, they received more than 20% of votes against the board's recommendation. The board encourages an open and constructive dialogue directly with shareholders and continues to be willing to engage with any shareholder on any relevant topics should they choose to do so.

[studentinvestor13] 18/12/2023 10:16

I have L2 and there has been a buyer of 125k shares sitting on the book at 273p for the last week. Somebody is keen to buy big at that level

[harry davis] 18/12/2023 08:38

I think the Braemar Risk Advisory growth is not being well understood by most who are not invested in this company. I have copied what I have written about it

Braemar Securities has quadrupled revenue since FY21

The strategy has also involved developing and bulking out ancillary services for chartering, like Braemar’s Securities offering which has quadrupled over the last 3 years to >10% of revenues, growing from £3.3mln in FY21 to £17mln in FY23 and growing a further 20%+ in the first half of FY24. This is a major opportunity for Braemar, with the securities business really only present in the UK at the moment, but which is a platform that can be rolled out more globally over time. The EU ETS regulation changes coming soon will an additional stimulus to growth, by further allowing Braemar to provide a service for shipping clients to manage the physical purchase of carbon credits in the EU. It would not be surprising to see Securities as a close to £50mln revenue business within 5 to 7 years. I asked Braemar this exact question on their half year presentation call with retail investors: can Securities get to £50mln in 5-7 years? Their answer was that their opportunity set in the UK, Europe, Singapore and other countries can support that ballpark number.

The brokers have BMS on only 7.5X what is basically next year's PE, and on my more optimistic forecasts I have it only just 6.0X what is basically 2025 PE

[masurenguy] 17/12/2023 00:27

The surprising way the Panama Canal backlog will affect the UK

he Panama Canal is meant to be smooth sailing for the world’s cargo. In normal times, 38 ships a day pass through the artery connecting the Atlantic and Pacific oceans — but the worst drought in 50 years has crimped the canal’s intricate lock system and reduced the daily passages to about 22. The result is that dozens of ships are crowding together on both sides of Panama, sometimes waiting more than three weeks for passage.

The obstruction has largely prevented liquefied natural gas (LNG) produced on the US Gulf coast from heading west to energy-hungry China. Unable to head to their usual markets, producers are sending their ships east to Britain and Europe instead, where LNG is used to generate electricity. Henning Gloystein, who directs the energy, climate and resources centre of think tank the Eurasia Group, said: “It has contributed to lower gas prices in Europe, [which] is getting cargoes at a discount because the Americans can’t sell their stuff elsewhere.”

It is not only the Panama canal that is disrupted. On Friday, two of the world’s biggest shipping companies — Denmark’s Maersk and Germany’s Hapag-Lloyd — announced they would be suspending all journeys into the Red Sea after attacks by militants on ships that they believed were destined for Israel. It is a major route to the Suez Canal, the world’s other major trade artery. Any blockages to the Suez could isolate Asia even further, pushing more ships to European markets.

Complete article:

[hpcg] 15/12/2023 18:42

Shipping is being diverted from the Red Sea now: All good for brokers and vessel owners.

[rivaldo] 15/12/2023 12:34

Great summary Harry Davis, cheers.

Newly tipped here too FYI (subscription only):



"Braemar – a recovery Buy?...

By HotStockRockets | Friday 15 December 2023

Shares in company describing itself as “a leading provider of expert investment, chartering and risk management advice to the shipping and energy markets”, Braemar (BMS) had recovered to above 300p as recently as June this year and reached 340p last year, before in July this year the shares were suspended on an investigation of a historical transaction. They though returned from suspension last month and we suggest now have further recovery potential from a 280p offer price.

etc"

[1pvh] 11/12/2023 20:08

Excellent analysis Harry very informative. Please keep up the good work

[hpcg] 10/12/2023 10:07

I would also mention Clarkson is a buy as well. It benefits from the same trends as Braemar and as the market leader may see funds inflow sooner.

[harry davis] 10/12/2023 07:51

Shortrun factor but the Houthis are now saying this weekend that they are banning the passage of any ships that look like they are going to Israel through the Suez. We are going to see more ships being diverted around the Cape of Good Hope to avoid any risk of conflict which may turn out to be further good news for shipping rates and shipbrokers as travel times lengthen and ship availability falls

[harry davis] 08/12/2023 08:55

@Studentinvestor13, thank you

@essential, read the "The growth agenda continues" part of my review in the link above

[essential] 08/12/2023 08:47

Profits and eps over the next 2 years are declining?

[studentinvestor13] 07/12/2023 18:01

I've completed reading the entire piece. That is a cracking piece of work Harry.

[harry davis] 07/12/2023 16:45

Hot off the tape, just published 1 minute ago

Braemar PLC: Setting Sail to Sweeter Seas

CEO Gundy has positioned Braemar for sustainable growth. Shipping conditions are buoyant and 7x PE will prove too low. My 12 month fair value target is 475p, 75% total return (70% capital, 5% dividend yield)

See my long and detailed dissertation which was the culmination of many hours of work. You can sign up for my substack for any future updates

[harry davis] 07/12/2023 11:32

I have accelerated my plan and I will publish my substack tonight

[harry davis] 07/12/2023 10:51

Edison updated forecasts

[tomps2] 04/12/2023 11:52

Braemar (BMS) FY23 & H1 24 Results presentation - December 23

Braemar CEO, James Gundy, CFO, Grant Foley and COO, Tris Simmonds present results for Full Year 2023 and H1 2024, followed by Q&A.

Watch the video here:

Or listen to the podcast here:

[grahamburn] 02/12/2023 18:33

The presentation was reassuring and encouraging going forwards. All 3 executive directors were fluent, coherent and on top of their roles. I shall be retaining my considerable holdings for the foreseeable future.

I had one little niggle - which I have had with previous presentations.

James Gundy is dynamic, motivational and clear thinking with definitive plans. He confirmed this during the time he was speaking. However, when the others were speaking he seemed disinterested, bored and fidgety - leaning back, stretching his legs out, looking around the room, running his hand through his hair etc etc.

This was somewhat distracting and discourteous to his fellow directors. He needs to brush up on his overt "concentration" skills next time.

[masurenguy] 02/12/2023 09:07

Another positive indicator for BMS.

Baltic Exchange Dry Index

The Baltic Exchange's main sea freight index, which measures the cost of shipping goods worldwide, was up for a 7th consecutive day on Friday, hitting a fresh high since May 2022, and extending a 101% gain for the November month, amid mounting supply of tonnage and cargo demand. The capesize index, which tracks vessels typically transporting 150,000-tonne cargoes such as iron ore and coal, surged 10.8% to 6,237 points; and the panamax index, which tracks ships that usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, rose 5.5% to 2,341 points. Among smaller vessels, the supramax index advanced 4.5% to 1,489 points.

[harry davis] 01/12/2023 20:05

For those that invested the time, the presentation today was very interesting. They were very confident in the shipping outlook. I asked about the rapidly growing securities business and they tacitly agreed with my suggestion it could get towards £50mln of revenues in the next 5 to 7 years from £20mln they look to get to this year and £3mln 3 years ago. Stay tuned for my long written piece within the next fortnight.

[deanowls] 01/12/2023 18:24

Absolutely ridiculous. Amateurs

[cwa1] 01/12/2023 14:44

You have to laugh...or cry...

Braemar Plc (LSE: BMS), a leading provider of expert investment, chartering, and risk management advice to the shipping and energy markets, announces the following clarification regarding the payment date of the FY24 interim dividend.



The interim dividend of 4.0 pence per ordinary share will be paid on 2 April 2024 for all shares on the register on 23 February 2024. The last date for Dividend Reinvestment Plan ("DRIP") elections will be 8 March 2024. The DRIP is provided by Equiniti Financial Services Limited. The DRIP enables the Company's shareholders to elect to have their cash dividend payments used to purchase the Company's shares. More information can be found at www.shareview.co.uk/info/drip.

[harry davis] 29/11/2023 15:29

They have to get AGM approval for the final dividend which will go ex dividend in early January and then come back with the interim dividend after that in February so 12p of ex dividends coming in the next 2.5 months

The Baltic Dry Index is up to 1.5 year highs today and has been flying... wait until the structural tanker shortage story comes into 2024 view :^)