Ocean Wilsons (holdings)... Share Discussion Threads

[piedro] 11/5/2022 16:23

Hello varies,

From the Wilson Sons Presentation - March 2022

[varies] 11/5/2022 11:35

Piedro,
Thank you for telling us of the SAAM transaction.
OCN used to provide a list of its tugs in the annual report. I cannot see one in the latest accounts but I see that the depreciated value of its Floating Craft is shown as $276 million (note 15 on p79) and that its Towage revenue in 2021 was $199 million (page 12).
OCN used to have about 20 tugs.
On this basis SAAM's acquisition of 17 tugs for $150 million does look cheap but, of course, tugs come in many sizes and one can be much more valuable than another.
Is OCN still the biggest tug operator in Brazil ?

[last of the mohicans] 11/5/2022 02:42

Hansa top 10 holdings end of business on 30/4/22
Cum Income NAV per Ordinary and 'A' Ordinary share* 309.27p

Ocean Wilsons Holdings Limited 24.32 ( OCN price listed as £9.65 )
Findlay Park American Fund 7.83 ( don't have yet but probably close to $168)
Vulcan Value Equity Fund 6.02
Select Equity Offshore, Ltd 5.19
iShares Core MSCI Europe UCITS ETF 3.78
GAM Star Fund PLC - Disruptive Growth 3.77
BlackRock Strategic Equity Hedge Fund 3.63
Schroder ISF Asian Total Return 3.09
Global Event Partners Ltd 2.81
Goodhart Partners: Hanjo Fund 2.67

Valuations on 31st March 2022
Cum Income NAV per Ordinary and 'A' Ordinary share* 319.93p

Ocean Wilsons Holdings Limited 24.43 ( OCN price listed as £10.10 )
Findlay Park American Fund 7.50 ( price listed as $168.03 )
Vulcan Value Equity Fund 6.29
GAM Star Fund PLC - Disruptive Growth 5.84
Select Equity Offshore, Ltd 5.30
BlackRock Strategic Equity Hedge Fund 3.64
Schroder ISF Asian Total Return 3.09
Global Event Partners Ltd 2.76
Goodhart Partners: Hanjo Fund 2.68
Pershing Square Holdings Ltd 2.59


Valuation on 31/12/21
Cum Income NAV per Ordinary and 'A' Ordinary share* 331.37p

Ocean Wilsons Holdings Limited 21.87 (OCN price listed as £9.325)
Findlay Park American Fund 7.93 ( price listed as $190.09 )
GAM Star Fund PLC - Disruptive Growth 7.01
Vulcan Value Equity Fund 6.88
Select Equity Offshore, Ltd 5.66
BlackRock Strategic Equity Hedge Fund 3.81
Schroder ISF Asian Total Return 3.12
Adelphi European Select Equity Fund 2.81
Goodhart Partners: Hanjo Fund 2.78
Global Event Partners Ltd 2.63

As of 9th May the Findlay Park American Fund was valued at $156.37 !

So the current loss on the portfolio from 31st Dec to 9th May on Findlay Park American Fund alone is $6.965M.

I Will be coming back to this data later to comment on it, yes I know it relates to the Hansa fund and not the OCN one but the holdings are very similar

LOTM

[royaloak] 10/5/2022 16:42

Bom preço de leilão em 1020, alguma ideia do porquê?

[flyfisher] 10/5/2022 16:32

LOTM, Within the portfolio i see some very poor Q1 performance as well as Findlay park.

Findlay Park American Fund - 14%
GAM Star Fund PLC - Disruptive - 23%
Vulcan Value Equity Fund - 38%
Schroder ISF Asian Total Return - 25%
Pershing Square Holdings Ltd - 10%
Impax Environmental Markets Fund - 22%
Prosperity Quest Fund / russia - 95%
Worldwide Healthcare Trust PLC - 17%
SPDR MSCI World Financials UCITS ETF - 6%

I cannot get prices for the p/e funds, but it does not look pretty.

[piedro] 10/5/2022 07:43

On the cheap?

SAAM alcanza acuerdo para adquirir remolcadores de Starnav en Brasil
News May 6, 2022
The purchase, valued at US$150 million, is a new step in the company’s strategy to lead the process of expanding its operations and represents one of the most important transactions in its history.

Santiago, May 06, 2022 | SAAM achieved a new milestone for its Towage Division today after signing an agreement with the Brazilian company Starnav to acquire 17 tugs currently operating in Brazil. The deal also involves the purchase of four additional tugs presently under construction.

[varies] 09/5/2022 08:48

Many thanks, LOTM.
It will be interesting to see if these independent directors can be persuaded to make any changes.

[last of the mohicans] 09/5/2022 01:54

Varies,

I'm sure they are people who "sympathise with the general policy espoused by those who control a majority of the shares".

But at the same time the FCA have been tightening the rules considerably in the last few years.

Under performance, lack of active management of the portfolio, not giving value for money are criteria that will be hard for these independent directors to ignore especially if they start having to talk with (or by email's etc) disgruntled long-term shareholders who have seen 10 years plus of capital depreciation.

LOTM

[varies] 08/5/2022 15:43

Last of the Mohicans
Thank you for your posting.
You surprise me very much in asserting that the Independent Directors will be the ones making the decisions.
Without wishing to cast any personal aspersions I would be very surprised if these independent directors had not been carefully selected on appointment as people likely to sympathise with the general policy espoused by those who control a majority of the shares. Rebels are seldom appointed as directors of long-established public companies.

[last of the mohicans] 07/5/2022 19:18

Varies,

The independent directors, are the ones who will decide if this cosy set-up continues or not.

They will have to justify why Hanseatic have the mandate to manage the investment portfolio & receive such lucrative rewards for doing very little.

In these days of freedom of information etc & far tighter rules & regulations on director responsibilities, they have to make sure the right decisions are being made in the interests of all shareholders otherwise, they themselves might end up liable for failing to act in a timely manner.

-----------

I had a look at the Hansa Trust holdings overnight and they have changed very little over the past 4 month's in percentage terms, so that would say to me, that they will have done very little liquidating of positions within the OCN portfolio either, which will have been costly to shareholders in terms of investment losses.

I did notice though that an ETF fund had appeared in the Hansa top 10 holdings this month

iShares Core MSCI Europe UCITS ETF 3.78%

I'm guessing OCN's portfolio might show a holding in this to.

LOTM

[varies] 07/5/2022 11:40

With hindsight it has long been apparent to me that I should have sold all my shares 10 years ago at 1400p and, having a cost of about 50p, paid 270p per share in CGT realising 1130p net of tax.
Without this gift I console myself with the substantial cash flow from the dividends.
This year's 70c equals 56p at £1= $1.25.
It is certainly the case that the descendants of Sir Walter Saloman still control OCN and, no doubt, do well out of it but I am thankful for the regular dividends.
In the fullness of time these descendants may sell out but there seems little point in minority shareholders fretting about it.

[last of the mohicans] 07/5/2022 00:33

The 1st quarter report will make interesting reading when it comes to the investment portfolio.

Findlay Park American fund has had a terrible 4 & a bit month's and has lost 20% of its value during that period, under performing its benchmarks considerably.

The fund has severed OCN well over the years & has been the star performer time & time again.

The question is has Hanseatic Asset Management actively managed the correction in US equity prices by selling down there overweight USA positions & gone to cash awaiting the bottom of the cycle to then re-invest the cash ( and thus justify to some extend the management & performance fee there paid) or have they simply left things virtually unchanged from the end of Dec position, thus causing a significant drop in the portfolio's valuation ?

I'm not looking for quarter end window dressing, I'm looking out for the real decisions & how quickly they were or weren't taken.

LOTM

[cousinit] 29/3/2022 19:43

It's clear that even where there's no appetite from the family to unlock value, the headline management fees for the investment portfolio are out of kilter with where the market has been for the best part of a decade so the Board should undertake a review at the very least...

[last of the mohicans] 28/3/2022 00:39

For anyone interested the graph is on page 15 of the 2020 annual report, there it shows you that over the last 10 years (as that's as far as it goes back in the diagram) that the performance benchmark over the 10 year period has risen from 100 to approximately 146, The OWIL Gross TW Performance has risen to approx 163 & the MSCI ACWI FM NR US$ has risen to approx 239.

Dig deeper and you'll find that the OWIL Net performance after deducting performance fees & investment management charges is up 3.9% per annum over the 10 years, the gross performance is 5.0% so we're losing 1.1% of the total value per year, and means in reality that we under perform the company's benchmark by 0.1% per annum as its up 4.0% per annum.

As for the MSCI ACWI FM NR US$ over the 10 years, well its up a mere 9.1% per annum.

For the record the investment portfolio was valued at $274M at the end of 2007 (when Wilson & Sons was floated off). It was valued at $263.4M at the end of 2010, back then some of the fund's value was passed on to shareholders but it only amounted to a few million $ per year.

If the cash had solely gone into an MSCI ACWI FM NR US$ index fund right from the start (or even from 2010 onwards) the investment portfolio would be worth north of $700M today.

Yes that's right, over $300M has been lost to shareholders simply so that those 2 family's could give there children / grandchildren (jobs for the boys).

LOTM

[royaloak] 25/3/2022 16:41

Big seller in extended Auction!

EDIT

Bought more at 940, not sure if it was the sensible thing to do though!

[piedro] 25/3/2022 11:28

flyfisher,

The purpose of the 'sales process', as they stated at the time, was not to sell their container terminals but to obtain a market assessment of the value of the assets.

If you download this report ...

New Global Container Port Performance Index (CPPI) Launched by the World Bank and IHS Markit
[...]

... you will find that the container terminals of Salvador and Rio Grande are quite highly rated 'globally' and of the best in Latin America.

[flyfisher] 25/3/2022 10:21

In 2018 they ran a sales process seeking offers for the ports. Singapore’s PSA, China’s Hutchison Port Holding and China Merchant Port Holdings made non-binding proposals, however nothing came of it.

I wonder if the retirement of the chairman will bring about some renewed interest in disposal?

[coolen] 24/3/2022 21:11

There's a double discount at Ocean's parent company Hansa Trust standing 30% below its own NAV, the largest holding being Ocean Wilsons. But, as Dozey correctly points out, minority shareholders in this group of companies are ignored. No sign yet of an agitator.

[dozey3] 24/3/2022 17:11

With huge discount to assets, Co should be mounting big buyback. Fear, though prospects are good, shareholders bottom of pecking order.

[eezymunny] 24/3/2022 08:23

Share porty prob down a bit since Dec 31 flyfisher... Even so...

[flyfisher] 24/3/2022 08:15

With a rise in PORT3 share price since the year end and fx changes i get a current SOTP of 1886p.

At 1000p, a 47% discount is much higher than the historic norm of around 25%.

[last of the mohicans] 24/3/2022 01:47

Interesting to note that Wilson&Sons are carrying out a 5 for 1 share split.

I wonder if Ocean Wilsons is going to do something similar ?

I have been hoping it would occur for a number of years now without any joy. Maybe the change of board members will bring about a change of strategy !

Who knows we may even see them finally under take a share buy-back!

LOTM

[eezymunny] 23/3/2022 22:54

Wilson Sons Q4 and FY

OCN is very dull IMO.
Too cheap.

[rambutan2] 09/3/2022 23:17

Just noticed that OCN is being included in the Small Cap and thus All Share. So, there will be some tracker buying:

02/03/22: FTSE Russell announces the quarterly changes to the FTSE UK Index Series. All constituent changes will be applied after the close of business on Friday, 18 March 2022 and will be effective on Monday, 21 March 2022 (rankings by capitalisation are as at close of business on Tuesday, 01 March 2022).

[ntv] 10/11/2021 16:21

Thanks Piedro
any thoughts on share price other than it is falling in Brazil