GSL - Global Ship Lease (High Dividend Stock)

[FreshlyBlended]

This is an excellent company. This company charters out ships to other companies. This market is generally doing horrible since the spot prices for shipping containers has dropped dramatically. What makes GSL unique is the fact the average charter contract length is 10 YEARS! So GSL is not affected by spot prices!



GSL is required to get quarterly ship appraisals as one of the loan covenants. If the Loan-to-value ratio on their ships goes above 100% GSL is required to stop paying dividends. Because of the market I am personally 100% sure the LTV is above 100% since they are basing new ship evaluations on new distressed sales data (just like the housing market).

GSL had a $0.92 yearly dividend
They temporally suspended the $0.92 per year dividend. GSL is still a cash cow really bringing in the cash. However, the bank is trying to squeeze them GSL for all they can since they are in a technical default on the LTV provision. Who cares if the LTV is above 100% if they are profitable, can make their loan payments, and the ships are still chartered out 10 years on average?

I would buy this stock and hold for a year or so. By then the LTV issues will be worked out as they will come up with new ship evaluation methods for distressed market conditions.

You can thank me (or give me money) when you realize you just bought a stock for $1.80 that could resume a dividend of $0.92



I should also point out that the largest shareholder in the company is CMA-CGM who also has the most ship charter contracts with GSL. So it is in CMA-CGM interests that GSL keep paying high dividends. It is also in CMA-CGM interest that they stay locked into their 10 year ship contract since they own a LARGE chunk of GSL

I spoke with the CEO, nice guy and he is working on the LTV issues and will do what is necessary during these unique market conditions even though it should not affect GSL

[CashInCalif]

I also like GSL and am considering adding more. I guess that should happen BEFORE the end of July??

[redwench]

FYI
The last ex-pay date was 2-18-09.
The pay date was 3-5-09

Schwab says dividend is intact, but I guess if you spoke to the CEO you got it from the horses mouth.

[redwench]

Global Ship Lease Announces Second Quarter 2009 Earnings Release, Conference Call and Webcast
8:30 am ET 07/20/2009 - Market Wire

LONDON, ENGLAND -- (MARKET WIRE) -- 07/20/09 -- Global Ship Lease, Inc. (NYSE: GSL)(NYSE: GSL.U)(NYSE: GSL.WS), a containership charter owner, announced today that it will hold a conference call to discuss the Company's results for the second quarter of 2009 on Monday, August 10, 2009 at 10:30 a.m. Eastern Time. The Company will issue financial results for the second quarter ended June 30, 2009 on Monday, August 10, 2009 before the open of market trading.


What: Second Quarter 2009 Conference Call and Webcast

When: Monday, August 10, 2009 at 10:30 a.m. Eastern Time

Where: There are two ways to access the conference call:

Dial-in: (877) 741-4249 or (719) 325-4817; Passcode: 3471820 Please dial in at least 10 minutes prior to 10:30 a.m. Eastern Time to ensure a prompt start to the call.

Live Internet webcast and slide presentation: Global Ship Lease

If you are unable to participate at this time, a replay of the call will be available through Monday, August 24, 2009 at (888) 203-1112 or (719) 457-0820. Enter the code 3471820 to access the audio replay. The webcast will also be archived on the Company's website: Global Ship Lease.

About Global Ship Lease

Global Ship Lease is a containership charter owner. Incorporated in the Marshall Islands, Global Ship Lease commenced operations in December 2007 with a business of owning and chartering out containerships under long-term, fixed rate charters to world class container liner companies.

Global Ship Lease currently owns 16 vessels and has contracted to purchase an additional three vessels. The Company has a contract in place to acquire an additional vessel for $82 million from CMA CGM, which is scheduled to be purchased in July of 2009 and also has contracts in place to purchase two newbuildings from German interests for approximately $77 million each which are scheduled to be delivered in the fourth quarter of 2010.

Once all of the contracted vessels have been delivered by the end of 2010, Global Ship Lease will have a 19 vessel fleet with total capacity of 74,797 TEU and a weighted average age at that time of 6.1 years and an average remaining charter term of approximately eight years. All of the vessels including those contracted for future delivery are fixed on long-term charters.

For additional information regarding Global Ship Lease, please visit Global Ship Lease.

Contacts: Investor and Media Contact: Michael CiminiThe IGB Group 212-477-8261

[v12345]

Global Ship Lease Provides Further Update on Credit Facility

Global Ship Lease Provides Further Update on Credit FacilityLONDON, ENGLAND--(Marketwire - June 26, 2009) - Global Ship Lease, Inc. (NYSE:GSL)(NYSE:GSL.U)(NYSE:GSL.WS), a containership charter owner, announced today that the Company has agreed with the lenders to extend its waiver for loan-to-value tests until July 31, 2009, during which time it expects to finalize an amendment to the $800 million credit facility. The Company was initially required to submit vessel valuations on April 30, 2009 and previously received a waiver until June 30, 2009 due to the challenges in the ship valuation environment. In connection with the agreement, Global Ship Lease will not pay dividends to common shareholders through July 31, 2009 and intends to review its dividend policy at the end of the waiver period. The facility will bear an interest margin of 2.75% through July 31, 2009.

I think this stock is at rock bottom but if they declare dividend this stock will start going up.

[gerbolito]

Hmmm, I did not search the company but shipping can be a good investment but I would go with trmd.