Let me start by saying that I'm a value investor and a close follower of Benjamin Graham's Net net strategy – Which is buying stocks that is trading way below their Net Cash per share.
This is to say, an investor should only purchase stocks that are trading below their bet cash per share after accounting for ALL LIABILITIES on their balance sheets.
Cosco Shipping International HK 517.HK happens to fit this bill.
It's a shipping services company that consistently pays out 100% of their net profits to shareholders and is currently trading way below their net cash per share and net book value.
It has a few good investment moats:
1) Net Cash Per share of $3
2) Net Book Value of $5.26
3) Dividend payout ratio of 100%
4) higher financing income due to higher interest income earned in a rising interest rate environment
What do you all think?
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