Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Thematic (Sector/Industry)

Early in the summer, we had downgraded the tanker shipping sector and asked investors to brace for lower earnings and lower asset values and stock prices, <a href="https://www.smartkarma.com/insights/tanker-shipping-cycle-counter-cyclical-investment-strategy-to-run-its-course-downgrade-to-neutral," target="_blank">https://www.smartkarma.com/insights/tanker-shipping-cycle-counter-cyclical-investment-strategy-to-run-its-course-downgrade-to-neutral,</a> all of which has materialized and honestly much faster than we had anticipated. We were early and do see the trend of lower earnings continuing on looming supply growth in 2017 and muted demand growth. The…

Early in the summer, we had downgraded the tanker shipping sector and asked investors to brace for lower earnings and lower asset values and stock prices, https://www.smartkarma.com/insights/tanker-shipping-cycle-counter-cyclical-investment-strategy-to-run-its-course-downgrade-to-neutral, all of which has materialized and honestly much faster than we had anticipated. We were early and do see the trend of lower earnings continuing on looming supply growth in 2017 and muted demand growth. The…

Tanker Shipping - Recent Quarterly Results and Dividend Cuts Confirm Our Thesis, Not Just Seasonal

Transport Sector, China and Asia-focused Research

Charles De Trenck

It is no easy task generating decent relatively low-risk long-term returns portfolio. Over the last decade I have put a lot of thinking into building such a portfolio. It did involve risk taking and periods of relative volatility. I have found several golden rules, also based on failures of up close experiences from myself and others. My hands down worse investment was not cutting losses in certain names into the 2008 crash – most notably Citigroup shares, some of which I was forcibly locked into owing to management options with false information from HR. GE was another counter I took a beating on in 2008+.But some 2009-09 investment lessons I found mirrored some of my 1987-88 market crash lessons. Over time I have reduced volatility in my portfolio.  My main lesson for my conservative investment style was that buying into the heart of a crash takes quite a bit of time and patience to claw back to break even on average picks.  But in the end I stuck to this value style for increasing positions a number of times over the years. What follows is a no-holds barred account of my rules based investments, and losses and gains which have led to decent long-term performance despite a few scary gaps.The second half of this piece is a dialogue with a global investor friend of 15-20 years.

It is no easy task generating decent relatively low-risk long-term returns portfolio. Over the last decade I have put a lot of thinking into building such a portfolio. It did involve risk taking and periods of relative volatility. I have found several golden rules, also based on failures of up close experiences from myself and others. My hands down worse investment was not cutting losses in certain names into the 2008 crash – most notably Citigroup shares, some of which I was forcibly locked into owing to management options with false information from HR. GE was another counter I took a beating on in 2008+.But some 2009-09 investment lessons I found mirrored some of my 1987-88 market crash lessons. Over time I have reduced volatility in my portfolio.  My main lesson for my conservative investment style was that buying into the heart of a crash takes quite a bit of time and patience to claw back to break even on average picks.  But in the end I stuck to this value style for increasing positions a number of times over the years. What follows is a no-holds barred account of my rules based investments, and losses and gains which have led to decent long-term performance despite a few scary gaps.The second half of this piece is a dialogue with a global investor friend of 15-20 years.

Building a Rules Based Perpetual Portfolio(Incl Global Investor Q & A)

Pokémon GO and the world of container shipping as we knew it<blockquote> “Dad, have you heard of Pokémon Go, can kids play it, when can I download it”, “Dad, for this birthday can you download for me the Lego Marvel's Avengers game”, “ Mom, can you please download this character for me”. </blockquote>That is my 9-year-old son asking for his reward after he has done his homework. A portion of his pocket money is now spent on the iTunes app store, that is the share lost by traditional retailers. He does love Lego and buys…

Pokémon GO and the world of container shipping as we knew it “Dad, have you heard of Pokémon Go, can kids play it, when can I download it”, “Dad, for this birthday can you download for me the Lego Marvel's Avengers game”, “ Mom, can you please download this character for me”. That is my 9-year-old son asking for his reward after he has done his homework. A portion of his pocket money is now spent on the iTunes app store, that is the share lost by traditional retailers. He does love Lego and buys…

DMER Shorts: Pokémon GO and the World of Container Shipping as We Knew It

Oil symbolically broke $40 to the downside US time Monday, though many stocks last week stubbornly refused to read the tea leaves from the physical market continuing to break down.  <a href="https://www.smartkarma.com/entities/12491" target="_blank" data-smartkarma-citation="entities:12491:1">Freeport Mcmoran Inc (FCX US)</a>, for its part, was lucky and managed to announce a US$1.5bn common stock offering to continue delevering its B/S. But where does this commodities complex correction lead us from here? What is the most likely pattern to test for?I think we need to be ready for a test to the downside and…

Oil symbolically broke $40 to the downside US time Monday, though many stocks last week stubbornly refused to read the tea leaves from the physical market continuing to break down.  Freeport Mcmoran Inc (FCX US), for its part, was lucky and managed to announce a US$1.5bn common stock offering to continue delevering its B/S. But where does this commodities complex correction lead us from here? What is the most likely pattern to test for?I think we need to be ready for a test to the downside and…

Is The Commodities Complex Breaking Down All Over Again?

Dry bulk normalisation continues; Tankers trend down in line with our expectations, Introduce Offshore sector<ul><li>Dry bulk stocks impacted by market malaise and company-specific events</li><li>Tide is turning for tanker operators; port sector transitioning to value play</li><li>Rally in offshore stocks could be a dead cat bounce; retracement in oil prices affect gas shipping</li></ul>

Dry bulk normalisation continues; Tankers trend down in line with our expectations, Introduce Offshore sectorDry bulk stocks impacted by market malaise and company-specific eventsTide is turning for tanker operators; port sector transitioning to value playRally in offshore stocks could be a dead cat bounce; retracement in oil prices affect gas shipping

DMER - Maritime Financial Insights -  July 2016

United States

Caterpillar Inc. designs, manufactures and markets construction, mining and forestry machinery. The Company also manufactures engines  and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

Graco Inc. supplies technology for the management of fluids in both industrial and commercial applications.  The Company designs, manufactures, and markets systems to move, measure, control, dispense, and apply fluid materials.  Graco's products are used for applying paints and coatings, high-pressure cleaning of equipment, and lubricating and maintaining vehicles and other equipment.

Nordson Corporation designs, manufactures, and markets systems that apply adhesives, sealants, and coatings to consumer and industrial products during manufacturing operations.  The Company's products include customized electronic controls for the precise application and curing of materials to meet customers' requirements.  Nordson operates around the world.

Illinois Tool Works Inc. designs and manufactures fasteners and components, equipment and consumable systems, and a variety of specialty products and equipment.  The Company's products include industrial fluids and adhesives, tooling for specialty applications, welding products, and quality measurement equipment and systems.  Illinois Tool Works operates worldwide.

Parker-Hannifin Corporation manufactures motion control products, including fluid power systems, electromechanical controls, and related components.  The Company also produces fluid purification, fluid flow, process instrumentation, air conditioning, refrigeration, and electromagnetic shielding and thermal management products.

IDEX Corporation designs, manufactures, and markets a variety of pump products, dispensing equipment, and other engineered products.  The Company's products include industrial pumps, lubrication systems, banding and clamping devices, and rescue tools.  IDEX markets its products to customers in the United States and overseas.

Xylem, Inc. is a designer, manufacturer, equipment and service provider for water and wastewater applications addressing the full-cycle of water from collection, distribution, and use to the return of water to the environment. The Company's products include water and wastewater pumps, treatment and testing equipment, industrial pumps, valves, heat exchangers, and dispensing equipment.

Wabtec Corporation, doing business as Westinghouse Air Brake Technologies Corporation, provides technology products and services for the rail industry on a worldwide basis. The Company manufactures a range of products for locomotives, freight cars, and passenger transit vehicles. Wabtec also builds new locomotives and provides aftermarket services.

Dover Corporation manufactures industrial products and manufacturing equipments. The Company's products includes printing, identification, marking and coding systems, waste handling, industrial equipments, refrigeration systems, display cases, industrial pumps, fuel dispensers, nozzles, piping, and electronic tank gauge equipments. Dover serves customers worldwide.

Snap-on Incorporated develops, manufactures, and distributes tool and equipment solutions worldwide.  The Company's products include hand and power tools, diagnostics and shop equipment, tool storage products, diagnostics software, and other solutions for the automotive service industry.  Customers include professional service technicians and motor service shop owners, among others.

CRRC Corporation Limited manufactures rolling stock products. The Company produces locomotives, passenger carriages, freight wagons, vehicles key components, and other products. CRRC also provides vehicle repairing, investment management, and other services.

FANUC CORPORATION manufactures factory automation (FA) systems and equipments, and robots. The Company's products include computerized numerically-controlled (CNC) equipment, servo motors, laser systems, industrial robots, wire-cut electric discharge machines, and CNC drill.  Fanuc participates in a joint venture with General Electric in the FA field.

China CSSC Holdings Ltd. offers shipbuilding, ship components, ship repairing and diesel engines manufacturing. The Company distributes its products within the domestic market and to overseas markets.

China Shipbuilding Industry Company Limited designs, manufactures, sells and leases ship parts.  The Company's products include engines and parts, auxiliay engines and transportation equipment.

KOMATSU LTD. manufactures and sells construction and mining machinery, including excavators, bulldozers, and wheel loaders.  The Company, operating on a global scale, also produces forklift trucks and engineering equipment such as press system.

Weichai Power Co., Ltd. specializes in the research and development, manufacturing and sales of diesel engines. The company's products are applicable to markets such as, heavy-duty vehicles, coaches, construction machines, vessels and power generator.

KUBOTA CORPORATION manufactures industrial machinery, farm machinery, and fluid piping systems.  The Company's products include ductile iron pipes, engines, tractors, combine harvesters, reaper binders, rice planters, and excavators.  Kubota also produces forged iron products, housing equipment, and environmental control plants.

Mitsubishi Heavy Industries, Ltd. is a comprehensive heavy machinery maker. The Company manufactures machinery, ships, turbines and engines, prime movers, aircrafts, and machine parts for military and commercial use.  Mitsubishi Heavy Industries also researches and develops nuclear power plants.

Hengli Petrochemical Co.,Ltd. manufactures chemical fibers. The Company researches, produces, and sells polyester filament and chips for consumer and industry products. Hengli Petrochemical markets it products worldwide.

Hengli Petrochemical Co.,Ltd. A (600346 CH)

Shenzhen Inovance Technology Co., Ltd. develops, manufactures and sells automate control products.  The Company's products include low frequency converter, servo drive, and programmable logic controller (PLC).

Shenzhen Inovance Technology Co., (300124 CH)

Deere & Company manufactures and distributes a range of agricultural, construction and forestry, and commercial and consumer equipment.  The Company supplies replacement parts for its own products and for those of other manufacturers. Deere also provides product and parts financing services. Deere and Company extends its services and products worldwide.

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Deere & Co (DE US)

Tanker Shipping - Recent Quarterly Results and Dividend Cuts Confirm Our Thesis, Not Just Seasonal

Early in the summer, we had downgraded the tanker shipping sector and asked investors to brace for lower earnings and lower asset values and stock...

Drewry Maritime Financial Research

Building a Rules Based Perpetual Portfolio(Incl Global Investor Q & A)

It is no easy task generating decent relatively low-risk long-term returns portfolio. Over the last decade I have put a lot of thinking into...

Charles De Trenck

DMER Shorts: Pokémon GO and the World of Container Shipping as We Knew It

Pokémon GO and the world of container shipping as we knew it “Dad, have you heard of Pokémon Go, can kids play it, when can I download it”, “Dad,...

Drewry Maritime Financial Research

Is The Commodities Complex Breaking Down All Over Again?

Oil symbolically broke $40 to the downside US time Monday, though many stocks last week stubbornly refused to read the tea leaves from the physical...

Charles De Trenck

DMER - Maritime Financial Insights - July 2016

Dry bulk normalisation continues; Tankers trend down in line with our expectations, Introduce Offshore sector Dry bulk stocks impacted by market...

Drewry Maritime Financial Research

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