CPLP - Capital Product Partners: Cheapest Containership Name But Concerns Remain

• CPLP has severely lagged its peers over the past year and is now the cheapest name in the containership sector.
• The optics on the acquisition of the Panamax trio weren’t the best, but the deal economics are solid: the downside is covered and it offers future optionality if markets remain strong.
• The dividend cut was unnecessary; management should have provided some guidance regarding the re-institution of the distribution.
• The announcement of a $30M repurchase authorization was a very good move and it will accrue significant shareholder value if utilized.
• Capital Maritime has several newbuild orders that look like attractive dropdown candidates for CPLP, which can only self-fund the acquisition of one of those vessels (and stretching it a bit up to two).

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