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Samudera - Sailing into the Sunset

Updated: Mar 20, 2022

This is going to be a very simple post as it details what I have done recently for Samudera. I like to keep this as a record to be able to look back on in the future.

As per what you have seen on the actual results, so far Samudera Shipping Lines had met and outperformed my expectations. The final results blew the top off and as per detailed in my prior

post, the dividend did come out around 40%+ profits, giving shareholders at the point in time > 20% dividend yield. The share prices have sky rocketed post results and dividend announcement. At the point of writing, shipping rates remain highly elevated and Q1 looks to be another bumper quarter. The Russia - Ukraine conflict is posited by many to boost shipping rates further.

With all the positive headlines above, I have personally sold my holdings on the portfolio. There were some trading between the ups and downs to try and take advantage of price movements, with the last sales around the $0.76 region. The investment thesis has proved to be correct and in all likelihood, there is further upside from the current prices. On the other hand, I believe the shipping industry to be incredibly cyclical. As a friend who works in the shipping industry puts it, "they never learn". I view this to be a game of chicken, whereby the longer you hold out, the more gains you might get. Get the timing wrong, and it all comes crashing down fast. With higher oil prices and chartering rates, I am of the view that it's fine to leave some money on the table and cash out the gains. With the drop in equities in certain sectors, there are other opportunities for me to be chasing.

Wishing all the shareholders the best in holding this stock if you decide to hold on. Such disruptions can persist for a very long time. I hope that for the readers, by reading The Squirrel's Drey, we had learnt something together about investing and along the way made further headway to building a nest egg.

Disclaimer: All posts on The Squirrel's Drey are for informational and discussion purposes only. This is not a recommendation to buy or sell securities discussed. Please do your own due diligence before investing.

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Mar 15, 2022

Why are you not waiting for the fat dividends ? Thanks.

Mar 17, 2022
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From my point of view, the dividends has been price in, with the evident jump right after announcement of results and dividends. This is due to the informational gap being closed between those who had already expected it from Samudera's historical dividends patterns and the general public who holds or just learnt about the company. With the jump in prices, the margin of safety from a price to book ratio angle has significantly reduced compared to periods in normalised markets. Of course, many people are expecting the shipping boom to continue, especially with disruptions in China from their Covid Zero policy and the Russia Ukraine war. And this could very well persist. Personally, it has played out to and above…

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