Dynagas LNG Partners
This company has continued to pay an outstanding distribution to unitholders. Dynagas LNG Partners L.P. (NYSE: DLNG) operates in the seaborne transportation industry worldwide. The company owns and operates liquefied natural gas (LNG) carriers. As of March 9, 2018, its fleet consisted of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP serves as its general partner.
Dynagas has continued to increase the distribution, and with U.S. LNG exports expected to jump dramatically, this could be a solid play for aggressive income investors.
Dynagas investors are paid a stunning 24.87% distribution. The massive $12 Jefferies price target compares with the $7.75 consensus target. Shares were trading on Friday’s close at $4.02 apiece.
This is one of the more widely covered names on Wall Street. Scorpio Bulkers Inc. (NYSE: SALT) engages in the provision of ocean transportation of dry bulk cargoes worldwide through the ownership and operation of dry bulk carrier vessels. It operates through the following segments: Ultramax vessels, Kamsarmax vessels and Capesize vessels.
Scorpio Bulkers has an operating fleet of 57 vessels, consisting of 56 wholly owned or financed leased dry bulk vessels (including 19 Kamsarmax vessels and 37 Ultramax vessels), and one time chartered-in Ultramax vessel. The company’s owned and finance leased fleet has a total carrying capacity of approximately 3.9 million deadweight tonnage, and all the company’s owned vessels have carrying capacities of greater than 60,000 deadweight tonnage.
Jefferies has a strong $10 price objective. The posted consensus target price is $9.33, and the stock was last seen trading at $5.82 a share.
This stock is also widely followed on Wall Street and offers perhaps a safer aggressive play. Seaspan Corp. (NYSE: SSW) operates as an independent charter owner and manager of containerships in Hong Kong. Seaspan has an operating fleet of 112 vessels with a capacity of 905,900 twenty-foot equivalent units (TEU), ranging from 2,500 TEUs to 14,000 TEUs in scale, and vessels leased to most of the world’s largest container liner companies, including Yang Ming, Maersk, MSC, Hapag-Lloyd, China Coscon and K-Line.
When the company hosted an investor day in November of 2018, management reiterated focus on shareholders and de-levering, with a goal of repaying $1 billion in debt. The chairman of the firm listed three possible areas for its merger and acquisitions pipeline: shipping/energy related, containerships and co-investing with liners.
The Jefferies price target of $10 is well above the consensus target of $8.61, which also compares to the most recent share price of $9.31.
These five top shipping stocks trading under the $10 level all have big upside to the analyst’s price targets. Again, while they are not suitable for conservative accounts, aggressive investors can get some solid share leverage buying 5,000, 10,000 or more and can make money on a much smaller share price move.