2024-03-12 10:30:00 ET
Summary
- Global Ship Lease has a fleet of 68 containerships and is benefiting from surging charter rates in the Red Sea region.
- The company's financial results show strong profitability and a robust net income performance.
- The preferred shares of Global Ship Lease are no longer attractive due to the risk of being called and resulting in a capital loss.
Introduction
Global Ship Lease ( GSL ) owned a fleet of 68 containerships at the end of 2023. It was still generating very strong cash flows thanks to its ability to sign new leases when the market peaked, and although I expected the charter rates to come down as some of the contracts will have to be renewed from this year on, the recent issues in and around the Red Sea have caused the charter rates to surge again and this puts Global Ship Lease in an enviable spot. I currently still have no position in the common shares of the company, but I have been tracking the preferred shares for several years now. And after having been bullish on the preferreds, I think they are a ‘sell’ at this time....
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For further details see:
Global Ship Lease: Time To Sell The Preferreds (And Buy The Common Shares)