Share Name Share Symbol Market Type Share ISIN Share Description
Tufton Oceanic. LSE:SHIP London Ordinary Share GG00BDFC1649 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +$0.00 +0.00% $1.06 $1.05 $1.07 $1.06 $1.06 $1.06 124 07:31:22
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
- - - - 0.00

Tufton Oceanic. Share Discussion Threads

Showing 651 to 673 of 675 messages
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DateSubjectAuthorDiscuss
07/2/2018
00:07
Focusing upon an interesting niche market with potentially an excellent yield ! Earn a steady income from ships Just before Christmas a Guernsey-based fund called Tufton Oceanic Assets (LSE: SHIP) launched on the London Stock Exchange, marking a real first for London – a chance for investors to make an income by renting out ships. Investors have long been able to invest in shipping giants such as Maersk or Hapag-Lloyd. But these are cyclical trading businesses, rather than ones focused on producing a steady dividend stream. In the UK, it has been possible to invest in a few small ship-owning companies under the Enterprise Investment Scheme (EIS), but there were no shipping investment trusts. This is a pity, because there’s much to like about the market. Like aeroplanes, ships produce a steady stream of rental or lease payments, and the market in shipping rentals is huge and very liquid, with many reliable, creditworthy customers. On the downside, its cyclical nature means the market is prone to bouts of oversupply, with prices collapsing as a result – as they did for the Baltic Dry index (which charts the cost of transporting raw materials) after 2008. But unlike many other asset-backed markets, grabbing hold of delinquent assets in a slump isn’t hard – repossessions have been going on for hundreds of years, and there is a very liquid market in new rentals for the ship owner. And as with any cyclical market, there’s always the potential for an upturn – indeed, we may be seeing one right now. The Baltic Dry has risen by around 60% over the past five years. The global economy is humming, helped by a strong US and China. Cargo rates have stabilised, and shipyards are relatively less busy – the global order book for new ships is at a 20-year low, and shipyard capacity has shrunk by 16% since 2012. An established player Tufton is an established player in the second-hand ship market, managing around $1.5bn across a variety of funds. It tends to target product tankers, bulk-cargo ships and smaller container ships. The vessels themselves might be anything from five- to 20-years old, trading at between 30% and 70% of their new value, while customers charter them for between two and ten years. As with aeroplanes, sale-and-leaseback deals are common – a big operator sells their new ship to a funding vehicle such as Tufton, then leases it from them. This leaves the finance outfit to deal with the hassle of the final residual value, or resale value. This is where the real profits are made – by buying second-hand ships cheaply, and making sure the residual value is as high as possible. Tufton maintains that now is the right time to buy. Certain types of ship are still quite cheap to buy, but rental rates are rising alongside the economy. This upturn isn’t being swamped (yet) by a sudden spike in new ship construction. Tufton reckons it can pay out 7% per year (5% in the first year), with an overall internal rate of return (a measure of project profitability) – including capital gains – of 12%. Tufton’s existing institutional fund has made a total return of 12.5% since 2015. The risks are clear (which is why the fund is floated on the specialist market, aimed at institutions and sophisticated investors). Shipping is cyclical and, in a downturn, residual values could plunge, and rental yields dry up. The fund is also dollar-denominated, which introduces currency risk. Yet as part of a diversified portfolio, this is an excellent source of alternative income, with real asset backing and steady income streams. https://moneyweek.com/earn-a-steady-income-from-ships/
masurenguy
26/1/2018
12:54
Featured in Moneyweek today
belgraviaboy
11/1/2018
23:00
A word of caution to income seekers. Shipping is a highly cyclical business, boom and bust within every decade.
sailor steve
04/1/2018
07:21
Citywire comment on SHIP: Http://citywire.co.uk/investment-trust-insider/news/shipping-fund-succeeds-in-slipping-away-with-91m-raise/a1080316?ref=investment-trust-insider-latest-news-list Could be interesting, when I have some free USD.
jonwig
31/12/2017
17:26
A new thread for a new Investment Trust in a new (to me) specialist area. If they are chasing a 7% yield and a total return of 12% per annum, I can see this appealing to income seekers. It is also priced in US$ so it will provide a currency hedge against the GB£. It certainly floats my boat.
lord gnome
31/12/2017
17:21
!FOLLOWFEED Quote (Investors' Chronicle, 29 Dec 2017): Tufton Oceanic Assets (SHIP) has raised $91m, slightly lower than its $100m target, and began trading on the Specialist Fund Segment of the London Stock Exchange on 20 December. The trust is targeting a 12 per cent a year NAV return with a cash distribution of 5 per cent in its first year and 7 per cent thereafter. It will invest in second-hand commercial sea-going vessels spread across the core segments of shipping. "There is currently an attractive opportunity in shipping to buy assets at a significant discount to their depreciated replacement cost and lock in long-term employment producing mid-teen cash yields," says Andrew Hampson, head of asset-backed investments at the trust's manager, Tufton Oceanic. "This is a strategy we've been following with success for the past couple of years and see limited competition due to the lack of capital currently being invested in shipping." Tufton Oceanic has invested over $1bn in shipping assets over the past few years. Company web site: hxxp://www.tuftonoceanicassets.com/
lord gnome
01/7/2014
15:09
something here? hxxp://www.investmenttools.com/futures/bdi_baltic_dry_index.htm#bdi_tenyear
pomp circumstance
29/6/2014
11:30
Almost two years on and Im asking the same question as in the last post.
hyper al
01/9/2012
17:15
I want to stick a lump in some sort of fund with high exposure to the BDI. ANyone know how? Im counting on one spike in the next 20 years. TIA
pomp circumstance
14/3/2012
19:39
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