Manage episode 282660553 series 2505215
Evangelos Chatzis, CFO of Danaos Corp. (DAC), a major containership lessor, joined J Mintzmyer's Value Investor's Edge Liveon Nov. 12, 2020, to discuss the containership markets and forward free cash flow potential.
Danaos was a top pick at the time at Value Investor's Edge and traded at a more than 50% discount to net asset value even as underlying market conditions were surging. We had allocated shares to this position at $5.05 in early-September, making DAC a potential 6-bagger as of the 2nd week of January (6x in 4 months). Admittedly DAC outperformed even our wildest expectations and our current 'fair value estimate' is $25/sh.
- (<1:30) Intro/Disclosures
- (1:30) What are the primary drivers of the containership market strength?
- (6:00) Any more opportunities to acquire ships in this market?
- (8:15) Discussion on current adjusted NAV.
- (9:50) Locking in lower cost interest rates? Target liquidity levels?
- (14:00) Potential for more private share repurchases?
- (15:30) Excess free cash for distribution or investments? Dividend plans?
- (22:30) Upcoming plans for the Gemini Joint Venture?
- (23:30) How far ahead can vessels be fixed? For what duration?
- (27:00) Impact of rechartering levels on future free cash flow?
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