Nancy Zambell, who edits the Buried Treasure Under $10 newsletter, is now teasing us that she’s found one of the “early winners of the great recovery” — that Greek shipper that can “Double your money — but you must act fast!”
And of course, you simply must subscribe to her newsletter. The newsletter’s very new and it actually gets decent reviews from my subscribers so far, though that’s no guarantee that her teaser picks are always solid gold — she also had the honor of having one of her teaser ads named the “Turkey of the Year” a few weeks ago.
But anyway, I always find it fun to have a look at her over-the-top touting … so today we’re looking for her Greek shipper.
She starts off by implying that she’s just following in Buffett’s footsteps after he agreed to purchase Burlington Northern, though with a far sexier idea:
“Mr. Buffett himself calls his BNI purchase an ‘all-in wager on the economic future of the United States.’
“I love it.
“It’s simple, and it makes sense. As the recovery builds, more goods, materials and purchased products will have to be shipped.BNI, with a near-monopoly on its strongest rail lines, will be a big winner.
“But I’m not buying Burlington-Northern.
“And neither should you, not if you want to double your money fast.
“Instead, using the same investment concept as Buffett, I’m betting on global recovery and I’m buying a Greek shipper that’s just 3 years old.
“It’s a Great Recovery play, like Buffett’s, but with much greater potential for small investors like us… we stand to make better profits than Buffett… faster, too!”
Unmentioned, of course, is that ocean shipping is far less a capacity-constrained business than North American railroads, so you get a lot of risk in exchange for your potential return, but don’t worry — we’re all smart enough to know the difference between a locomotive and a Panamax bulker, right?
So let’s get into some specifics about she particular shipper Zambell likes:
“Under $5 now, but not for long
“This young Greek shipper already has a fleet of 12 huge vessels circling the globe, loaded down with coal, grain, iron ore, fertilizers and all the other commodities that will soon increase in demand as economies worldwide recover.
“Revenues are locked in since the company charters its ships for one- to five-year contracts. Looking forward, the company’s entire fleet capacity—100% of it—is under contract for 2010. Ninety percent is booked for 2011, and 2012 is 45% booked already.
“Morgan Stanley, one of the largest commodities traders in the world, accounts for about 30% of this shipper’s sales. So yes, Wall Street knows about this buried treasure. Yet, as I write, institutional investors own less than 20% of the company’s stock.
“This could change fast. One thing’s for sure.
“This 3-year-old knows what it’s doing, and it sure is moving fast
“In just the past three years, the company has amassed a fleet of 12 huge dry bulk vessels with a capacity of about 765,000 dwt, shipper’s lingo for deadweight tonnage.”
And she’s even so kind as to break out their fleet for us:
“Our 3-year-old owns:Are you getting our free Daily Update
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“7 Panamax ships carrying coal and iron ore for energy and steel production, as well as grain and a variety of other dry bulk commodities.
“2 Supramax and 3 Handysize ships carrying iron and steel products, fertilizers, minerals, forest products, ores, bauxite, alumina, cement and other construction materials…
“And the ships are young, too.
“The fleet is about half the age of the industry’s average.”
So who is this little shipping company? Thinkolator sez it must be: