There are not one but many different types of investors that invest in shares of listed shipping companies, and the companies themselves should be aware of the investors’ differing approaches to what they expect from the companies they invest in, senior shipping analysts said.
“The fact that size matters and that liquidity is key comes as no surprise, but the inherent cyclicality in shipping means that companies with large fleets can be decimated to minimal market caps (capitalisations) over a short period of time,” said Erik Nikolai Stavseth and Kurt Waldeland, shipping analysts at Arctic in Oslo.
“It is at this time that the investor base is recycled from being momentum-driven to value-oriented and company needs turn from growth-focused to securing cash for operations through the trough market,” they said in a market report emailed to IHS Maritime.
“This in turn means that there is no such thing as one investor base, but that the investor base is a living organism which shifts with the cycle,” they said in the report emailed from New York, where the Marine Money conference takes place this week.
“Moreover a healthy dividend has never hurt and keeping a level playing field in terms of affiliated deals and excessive fees will give shareholders additional impetus to stronger pricing,” they concluded.