CAI - CAI's Preferred Share Issuances Accelerating Growth In Common Share Value
I initiated coverage of CAI International (CAI) in February extolling the virtues of the intermodal shipping container and arguing that CAI was best situated among the container lessors to take market share without sacrificing profitability. My thesis has played out, but the share price continues to languish below book value.
I want to update readers on CAI's performance and discuss the recent issuance of Series A (CAI.PA) and Series B (CAI.PB) 8.5% Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock.
I will frame my discussion of CAI by first reviewing