GRIN - Grindrod Shipping (GRIN) - Tune Into Virtual Transportation Logistics Forum
Tune in to hear about GRIN at today's Transportation & Logistics online forum. CEO Martyn Wade and CFO Stephen Griffiths will present at 3:00pm EST. Free registration is available at www.channelchek.comPresentation should focus on 2021 moves that enhanced competitive position and investor appeal. While GRIN entered the year as a pure play dry bulk company, moves in 2021 further enhanced the competitive position and broadened investor appeal. Those moves included the acquisition of the remaining interest in IVS Bulk for $46.3 million, acquiring the 2019-built Phoenix Ultra for $23.5 million, and extending long-term charters at attractive fixed rates. In addition, a $25 million secondary equity offering increased the public market float by ~10%, buy backs of ~$10 million were executed and an attractive variable dividend policy was instituted.Entering 2022 from a position of strength. With a larger owned fleet, a consistent cargo focused strategy and solid financial position, GRIN is well positioned to benefit from attractive dry bulk market fundamentals. In addition, there are built in growth opportunities from options to acquire five chartered-in vessels.No comment expected on new largest shareholder. Management does not typically comment on shareholder activity, but we believe that adding Taylor Maritime (TMI) as the largest shareholder is positive. Not only does it remove the overhang of the likely sale by a large shareholder, the transaction adds a strategic long-term investor who views GRIN's current asset value and dividend potential as attractive, and views the stock as undervalued.Maintain Outperform rating and price target of $31.00/share. A high quality asset base, consistent performance and simplified corporate structure are positives, in addition to the firmer dry bulk market and the sale by largest shareholder to a strategic buyer at a solid premium. Even though up 239% this year after rallying off the 4Q2021 low of $12.83/share in early November and a cash dividend of $0.72/share was paid, the stock is now down 8% in 4Q2021 and we believe that the risk reward profile and current valuation remain attractive, trading at an enterprise value multiples of 2.2x estimated 2021 EBITDA and 1.6x estimated 2022 EBITDA. Read More >>