Ocean Wilsons (holdings)... Share Discussion Threads

[bengt] 10/11/2008 16:49

I think that the fund manaagement team are quite astute. Afterall isn't it this team that cashed in a large chunk of the underlying Wilson Sons at the top of the market and put the cash into money market funds. I feel they are keeping their gunpowder dry ready for purchases when things are looking cheap again. Personally, I would rather these guys were managing my money than most overpaid fund managers in the City. I accept the earlier point that yes, we are paying management fees twice, in the sense that Hansa invest mostly in other funds, but given their track record, I think that they are probably worth it.

[cg1953] 13/10/2008 10:13

imo. we should have had a large cash distribution at the time of the demerger instead of more money into there fund management bizness !!!

[angus duncan] 09/10/2008 16:43

Why are they not using all this spare cash to do a share buy-back at the current price?

I mean assets were worth $14 per share which is maybe $12.50 now yet the share are under $9 that's a better return on the money than any fund manager can do in the current climate.

Lets have a share buy-back and put some of that money to good use

[davebowler] 12/8/2008 15:16

I stand corrected- I merely multiplied the half year profit before tax by 2 as a guesstimate

[angus duncan] 12/8/2008 12:23

Sorry Davebowler,

But EPS were 63 cents per share which puts them on a PE of 11.

Still think a direct Investment in Wilsons&Sons is better than owning these. However not so easy to do from the UK.

Should see continued good growth in Brazil and look forward to hearing what the plans are for the shipyard and expansion of the other port facility.

[davebowler] 12/8/2008 11:56

P/E ratio if we get another half year like that is 5.5x pretax profits
Very good value in my view.

[davebowler] 12/8/2008 11:53

Daft take on the results;

LONDON (Thomson Financial) - Ocean Wilsons Holdings Ltd. said its pretax profit for the first half came in well below last year, despite a 36 percent increase in revenues, due to the profit it made in 2007 on the sale of its stake in Wilson Sons Ltd.

For the six months ended June 30, the maritime services company's pretax profit reached $52.1 million compared with $250.27 million last year.

The company's 2007 results included the profit on the sale of minority interest of $213.7 million from the IPO of Wilson Sons Ltd. and removing the Wilson Sons IPO profit from the 2007 result, the comparative profit before tax for 2007 would be $36.6 million, the company said.

Ocean Wilsons said its revenue for the period rose to $248.44 million compared with $182.67 million last year driven by increases in its core businesses and expansion of vessel construction business.

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[grgkecer] 12/8/2008 11:18

But while retaining cash for investment:

A period of slower economic activity seems inevitable. Such a period will however generate many opportunities to invest on terms more favourable to investors than have been the case in recent times. Ocean Wilsons Holdings Limited is well placed with ample cash at its disposal to exploit such opportunities and generate good returns in the medium term.

[angus duncan] 12/8/2008 09:48

Q2 and half year results are out for Wilson & Sons Brazil.

Results are good, they continue to invest large amounts of money in the business to fund its future expansion.

[grgkecer] 12/6/2008 08:24

Institutional investors bullish on Brazil as S&P raises to investment grade


Let's hope OCN has been investing further there, too.

[davebowler] 20/5/2008 12:13

Queues at Brazilian ports

[angus duncan] 17/5/2008 19:04

I wouldn't say it is cheap, it is undervalued to some extent. It is a good long term investment.

[davebowler] 16/5/2008 13:54

So to summarise ;its below asset value, in a dynamic area of the world, in a dynamic sector,its revenue largely is in a rising currency...... why, I do believe its cheap!

[grgkecer] 15/5/2008 17:33

Market value of holding in Wilson Sons £7.80 per share, investments and cash about half as much again, amounting to £11.70 per share.

[davebowler] 15/5/2008 15:58

Good news on jump in turnover;

[grgkecer] 13/5/2008 07:36

Petrobras opens tender for service ships

By Upstream staff


Brazil's state-run Petrobras said today it opened a tender for 24 service ships, part of a bigger 146-boat order that will run through 2014 in the local market.

. . .

[davebowler] 01/5/2008 14:14

Brazil market up 6% today on its credit rating improvement,so this I imagine has had a beneficial knock on effect here.

[bengt] 31/3/2008 11:51

Angus, I take your point on "fees on fees" to a degree I hate paying manager fees for what is usually underperformance of the market. However in my opinion Hanseatic earn their fee by diligently choosing investments that have outperformed the market over the years (though I accept that a large part of the outperformance was due it's holding in OCN itself) - Their analysis of the market always reads well & I am fully on board for the most recent acquisitions. The discount to NAV will more than cover these fees going forward - I don't see why as an investment trust it should be trading at anything more than a 10% discount - especially as the management incentive plan is fully funded by cash put aside following the float of Wilson Sons. Do you have any guesses for the profitablity of the Brazilian business? Is there any analysis available in the Brazilian market relating to Wilson Sons?

[angus duncan] 31/3/2008 00:53

To be honest, don't think they will ever trade above NAV.

Also if there was an easy way to hold Wilson's & Sons shares in the UK would rather do that than hold Ocean Wilson shares themselves.

Paying a fee on top of the management fee that these funds already pay is just silly. It is purely to give the directors ( who control the company) money to play with. No real money being made for the shareholders. They would be better selling all these funds and buying UK Financial shares which are on a PE of 4 or 5 with good upside pottential in the next few years and a 10% dividend or spending the money buying up other port/container facilities.

The real growth in this company over the last 5 years has come from Wilson's & Sons where they are investing what are hugh sums of money (relative to the size of the business) over the last few years.With capital investment of $46M in 2006, $92M in 2007(compared to a profit of $70M). Being able to invest so much capital back into the business and get a good return on it is key for growth, just watch the results from the container terminals next year!

The completion of the new container berth will propel the company even further into profit, as will the growth in ship construction.

[davebowler] 30/3/2008 17:15

Thanks for that Bengt, thats the reason I've held onto these for years.
One day it will trade above asset value I believe.

[bengt] 30/3/2008 15:02

I've done the maths, seems to me we're trading at about a 28% discount to NAV (if we take the Braz. operation at market value rather than book). I'm also keen on the recent investments made throug the investment portfolio - very conservative, and based on emerging market & commodities theme. Loads of cash on the balance sheet to invest if markets get very cheap; if not then portfolio will rise anyway.

[grgkecer] 19/3/2008 18:26

Things could be even better this year:


Ocean Wilsons Holdings Ld
14 March 2008

OCEAN WILSON HOLDINGS LIMITED announces that its subsidiary Wilson Sons Comercio
Industria e Agencia de Navegacao Ltda. has started construction of four PSVs
(Platform Supply Vessels) for Magallanes de Navegacao S/A, three vessels are
PSV-3000 and one is a PSV-4500.


The total contracted value is approximately US$ 100 million. The contracts are
forecast to be completed by the beginning of 2011.



Petrobras To Hold Tender For 100 Oil Support Vessels - Estado3-18-08 1:17 PM EDT
RIO DE JANEIRO -(Dow Jones)- Brazilian state-run oil company Petroleo Brasileiro SA (PBR), or Petrobras, will hold a tender this year for the construction of about 100 small oil service vessels, the Estado newswires reported.

The project is "a gigantic program for support vessels," Petrobras Chief Executive Sergio Gabrielli was quoted as saying.

Petrobras plans to lease the support vessels, Downstream Director Paulo Roberto Costa was quoted as saying.

Gabrielli and Costa spoke during the inauguration of a new operational control center at the company's transportation unit Transpetro.

[deadly] 19/3/2008 17:03

Results out and looking good and surprisingly the share price did not tank.
Divi almost doubled.

[davebowler] 14/3/2008 14:15

LONDON (Thomson Financial) - Ocean Wilsons Holdings Ltd said its unit Wilson Sons Comercio Industria e Agencia de Navegacao Ltda has won a platform supply vessels contract worth about 100 mln usd from Magallanes de Navegacao SA.

The maritime services supplier said it has started construction on four PSVs for Magallanes de Navegacao and expects the contracts to be completed by the beginning of 2011.



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