MPC Container Ships: A Good Buy That Might Get Better

2025-03-07 13:21:41 ET

Summary

• MPC Container Ships ASA has made and has returned a massive amount of money to shareholders over the last 5 years.
• The industry benefits from crises; if the world is likely to continue to be unstable, then MPC is likely good value.
• I calculate a worse case valuation of MPC as $1.47, with any continued or new disruptions to shipping earning a significant upside.
• MPC management has shown themselves to be good stewards of capital, and it is mainly them that I am excited to invest in.

Intro

When I came across MPC Container Ships ASA ( OTCPK:MPZZF ) with a dividend yield of over 20% and an income statement that told me they were absolutely printing money, I dove into my research to find out how they did it and if it was sustainable. COVID and other crises are the how, and of course, it is not sustainable. But as I hope to impress upon you in this article, what I found was a management team that have been bold in down markets and conservative at the top, as well as a simple but interesting company that is not only below its fair value but there is a real possibility that it could be bought even lower, setting up a fantastic entry to a long-term hold....

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