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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (55777)7/30/2015 2:01:04 PM
From: E_K_S  Read Replies (1) | Respond to of 78715
 
Textainer Group Holdings Limited (TGH) - 40% add
TAL International Group, Inc. (TAL) - 50% add

I own both at higher levels and added a few more today; TAL @ $23.11/share & TGH $23.12/share.

The stories on building their LNG fleets are encouraging. Their legacy container storage is slumping due to fewer China exports (specifically to the U.S.). Both companies have/are investing into LNG container fleets that will be leased to 3rd parties. This new book of business should support their revenue growth.

The Grahm Number valuations are over 25% based on the current market price of TAL ($24.00/share) vs $31.30 GN and TGH ($23.00/share) vs $29.02 GN so further downside risk is low. Both companies cover their dividend payment now yielding 7% - 10%.

TAL Doubles-Up – Again
In addition to new orders of a thousand 25,000 litre capacity standard ISO tanks and a further seventy 21,000 litre units, TAL International, one of the world’s premier container leasing companies, have taken delivery of sixty 35,000 litre swap-bodies, effectively doubling its tank container fleet. The addition of nearly 3,000 units represents a growth of the TAL fleet in 2011 of 100% for the second successive year. TAL remains optimistic that the market will support a similar number of new build activity in 2012.
Expansion in tank container leasing market for duo
Textainer Group Holdings Limited and Trifleet Leasing (The Netherlands) B.V. signed an agreement under which Textainer will invest in new intermodal tank containers to be managed by Trifleet, marking Textainer’s entry into the tank container market.
My portfolio position is only 2% counting both companies. I would eventually like to build this up to a 5% size. Will add more shares as the dividend yield rises over 10.5%.

EKS



To: Paul Senior who wrote (55777)8/4/2015 12:05:16 PM
From: E_K_S  Read Replies (2) | Respond to of 78715
 
Textainer Group Holdings Limited (TGH) - upped my position by 60% w/ buy today @ $19.79/share

Earnings out this AM and were actually better than I expected. TGH selling below BV of $21.00/share. The company has the highest lease utilization in the industry at 97%. Their avg lease period is 39 months and only 6% of their leases mature this year. Company beat on revenues up almost 11% y/y.

From the report, management is doing a good job of expanding their container fleet (including company owned), selling used containers in a slightly depressed market and keeping overall debt leverage low (the lowest in the industry) while lowering their interest expense/debt cost.

Stock sold off on EPS miss and lower outlook. Their 9.5% dividend is safe w/ excellent coverage (better than TAL).

I see it as a good 'value' Buy entry point at current price levels.

EKS