WOW !! What a set of results

Happy New Year to CKN'ers and all who sail in her.

I was a bit slow in realising the potential here, but am already well up and am also grateful to CR for nagging on and on about it! I agree with all the conclusions above about CKN, with the obvious and only proviso that forward forecasts/freight rates are vulnerable to one-offs which affect the global economy, i.e a big SARS outbreak, terrorism etc. Nevertheless, the upside is excellent and the downside minimal IMO.

But CR, I think FSJ has more upside than you allow by looking at current year forecasts. If you look at EVG's forecast for 31 December 2004 dated 30th October, they go for 28.7p EPS. That puts FSJ on a P/E of just 9, with 32% earnings growth. FSJ are also going for a support services rating now which commands a higher multiple, say 13-15 times. A P/E of 14 would put FSJ at around 400p, 50% up from the current price. And if similar growth is forecast for 2005, given that the market looks 18 months ahead a price of 450p-500p is possible.

So my feeling is yes, CKN is more volatile and will benefit more directly and faster from the improving world economy. But if you want a solid shipping play with excellent prospects, FSJ is IMO almost as good a bet.

I own both, so this should be treated as a total shipping sector ramp!!