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Strategies & Market Trends : Value Investing

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To: Graham Osborn who wrote (55789)	8/1/2015 2:02:15 PM
From: E_K_S	Read Replies (1) of 78717

Textainer Group Holdings Limited (TGH) What about a similar analysis for TGH. A cursory look at their debt profile shows an equivalent amount of debt as TAL. I did not look at the interest coverage amount and/or dividend coverage. TGH is holding up ok but maybe it's only amount of time before this one sells off too. At some point where the FCF from their leases (and those that are renewed) convince shareholders that the current leverage is not as risky as previously perceived, I think the buyers will line up again. FWIW, both companies are investing in LNG container tanks that will be leased out on long term contracts (similar model that is done now for storage containers). I expect these tanks to have a higher ROC but a somewhat shorter useful life. They also provide a diversified revenue stream as a different customer/mix leases these tanks vs the metal storage containers. LNG tanks are generating double digit growth in placement (since 2012) so I expect that trend to continue. EKS

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