Danaos - A story about investing in shipping stocks!

Danaos stock analysis but also a perspective on the risks and rewards of investing in shipping stocks.

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I often get asked about brokers, here is a low fee broker, an international one that allows you to buy on global markets, and also offers complex solutions like options for when your investing skills grow. For now, it is one of the best solutions I have found for global investors, also based on your comments and inputs:

[sanc]

The irony is that the best times to look at these shipping companies are not the times when everyone is asking you to do a video on it. I always appreciate your grounded and thoughtful analyses. Have a great week Sven!

[jamshidkhavari]

I love your analyses! Honest, straight forward and to the point! Keep at it the same as you are.

[johnmcquaid]

I’ve learned a lot about this industry from your channel over the years. I will not invest in this industry. Thank-you!

[seva]

Mohnish bought it. And I think the bet sounds reasonable. You pay a PE Ratio of 3 and 2 years of business are already sold. If you get one extra year its a break even and everything on top is your profit

[MarekSztum]

thanks Sven, it gets momentum, because Monish Pabrai loaded up Danaos.

[John-vfqe]

Danaos, in particular, has a strong fleet, and with container demand growing, they’re in a prime position to take advantage. Plus, the shipping industry is cyclical, and we seem to be entering a favorable part of that cycle. But I think the key is timing, getting in when the market undervalues these companies

[marko.d.vidovic]

Ne uspevam da pogledam sve, svaki dan novi video :)

[RafitoMembroza]

I still remember in an investing forum, one guy posting stuff about shipping when everybody was talking about big tech and said confidently that he bought 13, 000 shares of Danaos at around $4 each. We were like: "what the hell is even that?". I still remember this moment almost 5 years later. It became clear to me that if you are monitoring different sectors and doing the homework, it can be super clear when to shoot hard. You don't need a complex DCF in a spreadsheet to know it's a good investment.

[jensino]

I like Kawasaki Kisen Kaisha: 77 % equity ratio, they reduced their debt when the opportunity in the sector was great in the last three years, 5 % dividend yield.
If you could make a video about them or Takeuchi MFG or Yamato Kogyo, that would mean the world to me, honestly. Great value picks for the fellow value investors. 🙂

[mydressmemos]

I have 35% of my capital investments in an IRA, 25% in index funds, and the balance spread across other investment accts totalling over $250k. I took a big hit in Q2, 2023. Right now i am just looking for ways to recover in 2025.

[ReiPago]

Greek ships are sturdy, bankrupted twice but still managed to stay afloat 😄

[paolovita]

Dry bulk and VLCCs are the place to be in shipping now: the orderbook is low, the fleet is old and ageing fast, most newbuild slots are booked till 2027, and IMO regulations synthetically shrink the fleet by gradually reducing the speed of older vessels for environmental reasons. DHT, ECO, SB, and SBLK are good names to look at. Containerships, LNG carriers, and car carriers are extremely risky now because of the large orderbook. DAC is not too bad because of diversification, solid balance sheet, and long-term charter contracts, but there is better value out there.

[RomilCPatel]

The issue with DAC is that there is a lack of return of capital. They should be doing way more buybacks.

Also keep in mind that DAC is a lessor meaning that it will lease out ships on a long term basis unlike companies like ZIM that are lessees hence are impacted by short term move in rates which DAC isn’t.

[RaphaëlsInvestingClub]

There's a ton of undervalued shipping stocks in Europe.
Höegh, Odfjell, D'Amico etc...

[rishabhnair]

Great video sven, funny thing is Mohnish Pabrai just added Danaos last quarter!

[zenastronomy]

for a pe of 2 I'd expect a dividend of 20% plus

[learngl]

We should look into builders, maybe is a better way in the long term

[WealthyChronicle]

The moment a stock looks ‘too good to be true’ in shipping, history shows it’s time to run. 🚨😂 Who else has learned this the hard way?

[berktacyldz]

Hi Sven,

If Carter's, Inc. (CRI) interests you, could you consider making a video about it? Thanks, and have a great week!

[maverick]

Great video as always Sven, what do you think about bunge global?