Why am I buying Yanzijiang and JES International now

This is a article i wish to read...
www.sinoshipnews.com/news_content.php?fid=3w3c1484

www.hellenicshippingnews.com/News.aspx?E...31-8bb6-a795f0b1fb90

While tracking the reading, it seems that many chinese shipyards are getting orders, so my gut feel is right...

Hope this will not be another false dawn.

Iron ore imports from china is also helping the BDI rates.

WHile the mega-container ship might add to over-supply, lets hope the ship building industry see bottom soon. I don't see recovery anytime soon too

thanks, greenrookie for the sharing.

I probably won't touch shipping stocks as BDI index can be volatile but ya.. it would be really great if China overcapacity issues can be resolved soon and growth starts stabilising and returning...

if shipping can do well, it will be a good signal to indicate a stable global recovery.

greenrookie wrote: This is a article i wish to read...
www.sinoshipnews.com/news_content.php?fid=3w3c1484

While tracking the reading, it seems that many chinese shipyards are getting orders, so my gut feel is right...

Hope this will not be another false dawn.

Iron ore imports from china is also helping the BDI rates.

WHile the mega-container ship might add to over-supply, lets hope the ship building industry see bottom soon. I don't see recovery anytime soon too

Yangzijiang update:

Yangzijiang has win orders for 9 boat barge orders.
www.yzjship.com/en_newsinf.asp?id=952

Yangzijiang is under selling pressure despite the momemtum in order winning and the fact the there are already some early signs(might be false dawn) of shipping turnaround (BDI improving, ship building orders increasing), mainly sue to the fact that YZJ has HTM investment.

The money squeeze in china to curb shadow financing in china is worrying investors of YZJ, will be closely monitoring impariment levels of YZJ in the next quarter report.

It's risk has increased, due to YZJ participation in the HTM investment, but I still like the overall risk reward return.

Will accumulate if price hit further south

Update 3:

www.sinoshipnews.com/news_content.php?fid=3w3c1526

China stimulus for shipping industry coming!

Don't know to be angry or happy, YZJ prices is so depressed that even during a rebound, its price get beaten...

Nonetheless, I will just stick to my plan of accumulating on weakness...
(like they say, in the short term, its a voting contest, in the long term, defintely a weighing machine, is that how they say it??)
Sigh...

btw,
www.yzjship.com/en_newsinf.asp?id=958

for anyone interested, an article written by an external reporter from the shipping news, which spell out the tranformation YZJ has taken, and the great results as compared to its peers.

info.sgx.com/webcoranncatth.nsf/V...penelement

The total consideration for the Acquisition is RMB110,000,000. The amount of the investment was
arrived at after an arms’ length negotiations on a willing buyer willing seller basis and taking into
account, inter alia, the net book value of RMB286,098,601 of JCSC as at 31 December 2012

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seems like a good deal, but changbo is already idle, so not impact on earnings of whatsoever, just bigger capacity to capture maket share when the turnaround come

the juicy news is this
info.sgx.com/webcoranncatth.nsf/V...penelement

The new Contracts secured comprise of six (6) units of 82,000 DWT bulk carriers, eight (
units of 64,000 DWT bulk carriers and one (1) unit of 94,000 DWT transload vessel;
whereby such vessels are scheduled for deliveries in the period from 2015 to 2016, and
therefore will not have any significant impact on the earnings of the Group for the financial
year ending 31 December 2013.

In 1H2013, the Group had secured a total of twenty-seven (27) effective shipbuilding
contracts with an aggregate value of US$1.01 billion. As at the announcement date, the
Group has a total of 51 options worth US$2.64 billion entered with its respective buyers, of
which 22 options are for containerships worth US$1.56 billion and 29 options are for multipurpose bulk carriers worth US$1.08 billion. With the Baltic Dry Index recently achieving a
52-week high of 1179 points, the Group is confident that more options will be exercised in
2H2013. Pertaining to the cessations declared by the Group for its three 2500TEU
shipbuilding contracts previously, the Group has sold all of them to the new customer in 2Q
2013.

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Yea!!

Dear Forummers,

This is not a short term recovery. It takes times. If you have no urgent need for the cash, just buy and leave it there for the next 12 months.

Again, this is NOT a recommendation to buy. You buy at your own risk. If you make money, it is your credit.


MacGyver