Just to say that I dipped my toe in the water a few days ago and bought some of these. They increases my diversification but are far from risk free. TMI listed on the LSE in 2021. It's mangement are steeped in shipping and chartering.
The Company is an investment trust. Its accounts are reported in US dollars. IT is listed on the LSE. It owns and operates a fleet of cargo ships which operate principally in the Far East. It advises that the particular types of ship it owns and leases out are in short supply. Included in their calculation of profits/losses are transactions related to the valuation of vessels and their current charter rates/costs. They carry dry cargo (bulk minerals, dry foodstuffs etc and because of their limited size size and design carry smaller amounts of goods to ports which are unsuitable for receiving large vessels. Hence they are thus targeting a niche market. The Company is currently very profitable. It has recently bid for a rival business, Grindog Shipping which if successful would double its fleet. Grindog is listed on the Nasdaq/JSE. TMI already owns about 26% of the shares.
TMI is trading at well below its NAV (which is related to the value of ships it owns and the margins it holds for forward general charters.)
IT has been paying bumper dividends, covered by profits.
At the present time the rates to charter the type of ships they own is at a high level because there is a shortage of boats of this type The Management think this situation will last until at least 2024 as few ships of this type are being ordered/delivered as a result of the current recession, concerns about rising costs and expectation of needs to change the designs of new vessels due to ESG concerns. ITM's average age is about 7 years old. They have a refubishment program in place to add improvements and are have a committment to ESG.
Any thoughts?
Smiling Mickey.
