The earnings of this shipping company are forecast to grow by more than 50% next year. This is a penny stock, and speculative, so please make sure that you buy it judiciously.
Seanergy Maritime Holdings Corp. (SHIP)
From Contra the Heard Investment Letter
As many shippers wait offshore to dock, their revenues climb, thus, I am looking to this sector for a big return. Will it better the 20-Year, 18.1% annualized return at Contra the Heard Investment Letter? Time will tell, but Seanergy Maritime Holdings (SHIP-Q) has lots of potential.
This stock annihilated shareholders and, if you care to glance at the chart, it appears to have traded at more than US$175,000 roughly 13 years ago. That absurd figure is adjusted for stock consolidations. There have been four of these in the past decade, ranging from 1 to 5 to 1 to 16, yet even after all that, the share count still crests 173 million.
The recent quarterly results were a record, with revenues of $50 million, up 146% from a year ago. Net income was $20.1 million, up 459%. 100 percent of the fleet is being deployed, with 88% at index-linked rates. The success has allowed the company to do a $16.6 million buyback, which will start to reduce the share count.
All of this success makes us believe that the stock could do better than a quadruple from the $1.01 price it was acquired at.
Benj Gallander, Contra the Heard Investment Letter, 416-354-2458, gall@pathcom.com, contratheheard.com, December 16, 2021