CAI - Long CAI International - Bet On International Trade 45% Upside Catalyst Idea
CAI International (CAI) is a straightforward business. They buy and then rent out ocean/rail shipping containers. Individual shipping companies have high demand variance between routes. When pooled together, the supply of shipping containers at a given port smooths out significantly. Scale also better allows CAI to exploit the second hand market when favorable. This is how CAI adds value. Since 2015, the company has expanded into logistics.
1. Financial Situation
Net income of $80M over the past year represents modest 20% growth in 5 years. The slowdown was caused by a decrease