wad - 'At the risk of breaking silence , I came across a broker tip for CKN who point out that besides the shipbroking role , CKN dominate the market in shipping data and this makes them masters of insight into ships maintenance and conditions variables. Just over a tenth of CKN employees are in the data dept.'
It provides Clarkson with the invaluable opportunity to firstly use their shipping research data to 'front run' the market before making it available to the shipping and ports industries, Local & National Governments, shipyards, port operators and developers, via their award winning subscription service: Shipping Intelligence Network, and Specialist Market Reports.
Clarkson Research - Shipping Intelligence Network |
A different angle on CKN is the directors bonus issue. They are an outlier in that the CEO bonus last year was 9% of the total pre-tax profit , and 80% of the total bonus pool.The bonus was six times his salary. Is he worth five times all the rest of the BOD together?
Bonuses in 2023 were paid on the basis of a floor of £33m pretax profit, which seems a pretty low floor given the profit turned out to be £123m. So it was not exactly rewarding excellence with such a low target.
Clearly bonuses have a role in stimulating business and it might seem churlish to complain about rewards when the share price is performing well. But such a low floor to the bonus pool rewards moderate results too, even when the share price falls. And unlike most companies that mix bonuses between shares and cash, CKN gives 90% cash.
Maybe this is unfair criticism and the CEO is worth the money, hard to know from the outside.
Still holding myself , in spite of this. |
At the risk of breaking silence , I came across a broker tip for CKN who point out that besides the shipbroking role , CKN dominate the market in shipping data and this makes them masters of insight into ships maintenance and conditions variables. Just over a tenth of CKN employees are in the data dept. |
Thanks, this does make a change from some of the other BBs. |
Welcome bountyhunter. It is an impressively quiet BB , next stop TU in May.... |
 Clarkson PLC, the world's leading provider of integrated shipping services, today announced that results for the year ending 31 December 2024, are now anticipated to be slightly ahead of current market expectations. Clarkson’s underlying profit before tax, subject to audit, is now expected to be not less than £115m. This would be up from £109.2m in FY23, around 6% or so, and would constitute another year of decent if unexciting profit growth. The share price has popped up close to 9% on the positive guidance and is extending its 3-month rebound off early Q4 2024 lows with further near term upside potential ahead of record highs around 4675p. There wasn’t any additional detail in today’s release but the newsflow was positive and continues the good run from the business which has been delivering impressive top and bottom line growth numbers for a few years now. The share price remains in an 18 month uptrend and is profitable – it is top ranked for profitability metrics in 8 names in the Freight & Logistics sector. Valuation has become a little unhelpful with forward PE ratio up to 14x, but 6 out of 6 brokers following the share still rate it as a Buy or Strong Buy. With global growth set to accelerate over the next couple of years as central banks around the world deliver stimulus, the sector as a whole should also do well. And the share price already has near term momentum which is extending today. |
Nice jump, but still undervalued.Safe, solid stock and growing and profitable. |
Bought in here morning, should have done earlier as on my watchlist for ages, better late than never!
Not UK dependent and consistent divi growth were reasons why I had this on my watchlist. Also additional to today's bullish TU the chart shows a golden cross about to form. |
Closed Period Trading Update
Clarkson PLC, the world's leading provider of integrated shipping services, today announces that results for the year ending 31 December 2024, are now anticipated to be slightly ahead of current market expectations.
Clarksons' underlying profit before tax, subject to audit, is now expected to be not less than £115m.
Clarksons' results will be reported on 10 March 2025.
Ends
So should see a further bounce today. Funny how the price began to rise yesterday afternoon just before the close. Almost as if... |
Sp certainly seems to be recovering in last month , despite further drops in the Baltic Dry Index, down by half in the last yr , and by 3/4 on the 2021 peak.
Looking at the Freightos Baltic Index tells a different story though , with rates having stayed high this year . The expectations about rates falling in response to the fleet expansions has yet to materialise, though maybe the route disruptions and weather events have delayed this. |
Berenberg starts Clarkson with 'buy' - price target 5,075 pence. |
Why the 9% jump today? |
Don't think they do a Nov interim results, nothing on investors calendar and have not done recent years, not until next year I think. |
Analysts' Consensus
Mean consensus
BUY
Number of Analysts
5
Last Close Price
36.35GBP
Average target price
47.89GBP
Spread / Average Target
+31.75%
High Price Target
52.00GBP
Spread / Highest target
+43.05%
Low Price Target
42.45GBP
Spread / Lowest Target
+16.78% |
Next Interim Results
at a guess early November, GUY FAWKES DAY perhaps
heres to going sky high with spectacular fireworks
chuckle and cheers |
no divi until next year |
Who owns Clarkson shipping?
They are a wholly owned subsidiary of Clarksons Securities AS, which is ultimately owned by Clarkson Plc (LON: CKN) in Great Britain. |
Analysts' Consensus
Mean consensus
BUY
Number of Analysts
5
Last Close Price
36.80GBP
Average target price
47.89GBP
Spread / Average Target
+30.14%
High Price Target
52.00GBP
Spread / Highest target
+41.30%
Low Price Target
42.45GBP
Spread / Lowest Target
+15.35% |
Some recovery afoot? |
The share price continues its decline, but has a low P/E of sub 14, has a net cash position and has growth. This decline will not persists. Can only presume a large seller has been dumping and this will be temporary and we will move up 30% over the weeks and months ahead.
...and now we have had more China stimulus news and as a macro person, this is time to be stimulating the economy in this cycle. Clarkson does have exposure to China. According to their 2022 Annual Report, 24% of all global imports are into China. This indicates that a significant portion of the global shipping market, which Clarkson is heavily involved in, is connected to China. Additionally, the company’s strategic focus on facilitating global trade means they are likely impacted by economic and geopolitical developments in major markets like Chin. I have added. |
Yes agreed a good time to buy the dip |
A Buy & Hold investors dream long term chart - Clarkson (CKN)
Despite having over seventy circa 15% share-price pullbacks since the previous commodity/shipping market cycle low in 2000, Clarkson, the World's Largest shipbroker has since returned:
* Forty fold capital growth
* Ten times the original investment received in un-reinvested dividends
* A total return of 50 times the original investment....(inflation unadjusted)
* A total 31% CAGR for shareholders over the last 24 years.
* £10k invested in 2000, would be worth circa £500k today in Capital Growth + Div's
Invested £50k in CKN in 1999 and averaged up on numerous occasions between £2 and £7 during the next decade - if I'd let all the investments in CKN run instead of taking profit mostly in the £teens to invest in other equities to rebalance the portfolio risk, the CKN investments would collectively now be into 8 figures.
Why is it important in the global shipping sector to be well researched and have long first hand experience of the extreme boom and bust nature of its long term market cycle?
Clarkson shipbroking peer Braemar's long suffering shareholders have been rewarded for their loyalty since 2000 with just a 72% share-price increase from 169p to 292p. Mostly the result of repeatedly failing to appoint a management team with the required sector knowledge, management experience and talent to successfully navigate each stage of the market cycle to maximise long term capital growth.
AIMHO/DYOR |
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