Another short charter on the Oakland signed before a four year charter starts. Yesterday, two time charters on the Oakland 4,253 TEU intermediate were announced. The first one runs 60-90 days at a TCE rate of $130.0k/day and the second one runs for at least four years (with a three month redelivery window) at a TCE rate of $42.0k/day into 1Q2025. While down from recent highs, the time charters are positive for cash flow visibility.No change to our 2021 EBITDA estimate of $53.9 million based on TCE rates of $18.6k/day. As discussed in recent notes, forward cover is full and the Corfu is repositioning toward China on a short charter prior to dry docking.Updating 2022 EBITDA estimate and forward cover. We are moving our 2022 EBITDA estimate to $101.6 million based on TCE rates of $27.0k/day. Forward cover is high and we estimate that 80% of 2022 available days are booked at an average TCE rate of $28.0k/day.Debt financing on acquisitions increases financial leverage, but debt load matches forward cover. Financial leverage is moving up due to acquisitions that are mainly financed with debt. The closing of two acquisitions in 4Q2021 will increase total debt to $110.4 million and net debt to $85.3 million in 4Q2021, but the higher debt load is manageable at LTM EBITDA multiples of 2.0x total debt and 1.6x net debt. Moreover, 4Q2022 net debt should drop to ~$16 million or 0.2x 2022E EBITDA even though new build capex will be in the $19 million range.Maintain Outperform rating and price target of $45.00/share. We remained surprised by the sharp 21% drop this quarter after the slight miss on 3Q2021 operating results and believe that the risk/reward profile is very attractive even though the stock is up 387% this year. Our container market outlook stays positive and numerous longer term charters at higher rates create forward 2022 cash flow visibility. Recent acquisitions derisked with long time charters, improved forward visibility and the current valuation support a positive outlook. Favorable container market fundamentals, new time charters and two acquisitions are positives, and shareholder-friendly moves are possible over the next quarter. Read More >>