Core Insights - The shipping sector is expected to see a shift from headwinds to tailwinds due to improving geopolitical conditions and trade negotiations, particularly between the US and China [21][22][26] - CMB.TECH is highlighted as a top pick for 2026, primarily focused on dry bulk shipping, which is anticipated to benefit from new mining operations and a shift in cargo routes [12][15][19] - The overall performance of shipping investments in 2025 yielded a 23% return year-to-date, outperforming broader market indices like the Russell and S&P 500 [6][7] Company and Industry Overview - Value Investor's Edge has grown significantly over the past decade, now comprising a team of 11 and over 700 active members, celebrating its 10-year anniversary [5][7] - The shipping market has shown resilience, with returns of 50% to 55% in previous years, although 2025 was considered a good but not excellent year [6][5] - The dry bulk sector has been underinvested in new capacity, which may lead to opportunities as demand increases from new mining projects, particularly in Guinea [15][16] Investment Strategies - The focus for 2026 will be on high-quality, defensive stocks with stronger balance sheets and larger backlogs, reflecting a cautious approach amid macroeconomic uncertainties [10][11] - Stock selection metrics will prioritize companies with favorable fair value estimates, projected earnings, and dividends, while avoiding those with risky management or balance sheets [33][34] - The importance of dividends is emphasized, advising caution against high-yield stocks that may not sustain payouts during market downturns [40][42] Market Outlook - The macroeconomic environment is expected to improve, with stronger GDP growth anticipated in both the US and Asia, countering earlier recession fears [26][28] - A thematic rotation from tech stocks to value-oriented sectors, including shipping, is seen as a potential positive trend for the industry [29][31] - The shipping sector is positioned to benefit from increased trade and improved economic conditions, with a focus on quality investments to navigate potential market volatility [32][46]

Core Viewpoint - Hafnia Limited has successfully met all conditions for acquiring approximately 14.1 million A-shares in TORM plc, representing about 13.97% of TORM's issued share capital following TORM's recent capital increase [1][2]. Group 1: Acquisition Details - Hafnia's acquisition of approximately 14.1 million A-shares from Oaktree Capital Management has been confirmed, with completion expected shortly [1][2]. - Following TORM's announcement of an increase in issued share capital by 3,380,278 new A-shares, Hafnia's stake will now represent approximately 13.97% of TORM's total issued share capital [2]. Group 2: Company Overview - Hafnia is a leading tanker owner, specializing in the transportation of oil, oil products, and chemicals for major oil and chemical companies [2]. - The company operates around 200 vessels and provides a fully integrated shipping platform, including technical management and commercial services [3]. - Hafnia is part of the BW Group, which has over 80 years of experience in oil and gas transportation and related services [4].

Core Insights - Costamare Inc (CMRE) has one of the oldest fleets in the shipping industry and is currently in the process of renewing it [1] - Despite experiencing its most profitable years, shareholder dividends have been frozen for the last few years [1] Company Overview - Costamare Inc operates in the shipping industry with a focus on container vessels [1] - The company is taking steps to modernize its fleet, which may enhance operational efficiency and competitiveness [1] Financial Performance - The company has seen significant profitability in recent years, yet this has not translated into dividend payouts for shareholders [1]

Core Viewpoint - Costamare (CMRE) is a containership owner valued at $1.9 billion, primarily chartering its vessels to leading liner companies under multi-year contracts [1][2]. Group 1: Company Overview - Costamare is headquartered in Athens, Greece and offers various shipping services including technical support, maintenance, insurance consulting, and financial services [2]. - The company has a fleet of containerships that operate on regularly scheduled routes between major commercial ports [1]. Group 2: Stock Performance - CMRE stock has shown strong technical momentum, gaining nearly 30% in the last month and reaching a 52-week high of $16.25 on December 3 [4][5]. - The stock has a 100% technical "Buy" opinion from Barchart, with a Weighted Alpha of +49.62 and a Relative Strength Index (RSI) of 81.54 [5][6]. - Analyst sentiment is mixed, with Morningstar rating CMRE as 19% undervalued and Seeking Alpha giving it a "Strong Buy" rating [5]. Group 3: Technical Indicators - The stock recently traded at $16.08, with a 50-day moving average of $12.95, indicating significant price appreciation [6]. - Costamare has made 15 new highs and gained 29.53% in the last month, maintaining its Trend Seeker "Buy" signal [6].

Core Insights - BW LPG Limited reported a Q3 2025 profit attributable to equity holders of US$57 million, translating to an earnings per share of US$0.38, driven by solid shipping performance despite a negative Product Services accounting result and a positive realised trading result [1] Financial Performance - The TCE (Time Charter Equivalent) income for Q3 2025 was US$51,300 per available day and US$48,700 per calendar day, indicating strong performance in the shipping sector amidst market uncertainties [1]

Core Insights - ZIM Integrated Shipping Services Ltd. reported disappointing third-quarter 2025 results, with earnings and revenues missing estimates and declining year-over-year [1][9] Financial Performance - Quarterly earnings were $1.02 per share, missing the Zacks Consensus Estimate of $1.67 and representing a decline of 89.1% year-over-year [1][9] - Revenues totaled $1.78 billion, falling short of the Zacks Consensus Estimate of $1.93 billion and decreasing by 35.7% from the previous year [2][9] - Adjusted EBITDA for the quarter was $593 million, down 61% year-over-year, with adjusted EBITDA margins falling to 33% from 55% [3] - Adjusted EBIT was $260 million, compared to $1.24 billion in the same quarter last year, with margins dropping to 15% from 45% [3] Volume and Rates - Carried volume decreased by 5% year-over-year to 926 thousand TEUs [2] - Average freight rate per TEU fell by 35% year-over-year to $1,602 [2] Guidance Update - ZIM updated its 2025 guidance, now expecting adjusted EBITDA between $2.0 billion and $2.2 billion, up from a prior range of $1.8 billion to $2.2 billion [4] - Adjusted EBIT guidance was also raised to a range of $700 million to $900 million, compared to the previous range of $550 million to $950 million [4] Liquidity Position - At the end of the third quarter, ZIM had cash and cash equivalents of $1.29 billion, an increase from $1.18 billion at the end of the previous quarter [5] - The company generated $628 million from operating activities, with net capital expenditures totaling $54 million and free cash flow of $574 million [5] Dividend Declaration - ZIM's board declared a regular cash dividend of approximately $37 million, or 31 cents per ordinary share, reflecting nearly 30% of third-quarter net income, payable on December 8, 2025 [6]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $28.9 million for Q3 2025, an increase of approximately 20% compared to the previous year [4][11] - Adjusted EBITDA margin increased from 15.7% to 17.1%, reflecting a 22% increase in shipping days and a 13% decrease in voyage expenses on a per-day basis [11][12] - GAAP net income for Q3 was $12.2 million, or $0.19 per diluted share, while adjusted net income was $11.2 million, or $0.17 per diluted share [12][13] - The company ended the quarter with approximately $94 million in unrestricted cash and total debt of approximately $386 million [7][13] Business Line Data and Key Metrics Changes - The company achieved TCE rates averaging $15,559 per day, a premium of approximately 10% over the average market rates for Panamax, Supermax, and Handy Size vessels [4][11] - Vessel operating expenses increased by approximately 57% year over year, primarily due to the acquisition of the SSI fleet [12] - Total general and administrative expenses increased by 64%, from $6 million to approximately $9.8 million, mainly due to the consolidation of technical management operations [12] Market Data and Key Metrics Changes - Near-term dry bulk fundamentals remain constructive, with expected agricultural shipments from the U.S. to China supporting U.S. Gulf markets [7] - The company has booked 4,210 shipping days for Q4 2025, generating a TCE of $17,107 per day [8] Company Strategy and Development Direction - The company is focused on improving fleet efficiency and emissions performance, with ongoing fleet renewal strategies [6] - Expansion of integrated service platforms is a priority, with new operations commencing at various ports [5] - The company aims to maintain a disciplined approach to capital allocation, prioritizing investments in fleet and organic growth opportunities [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the medium-term setup due to limited effective supply growth and regulatory constraints [7] - The CEO announced retirement effective January 1, 2026, with the COO expected to lead the company into its next chapter [8][9] Other Important Information - The company repurchased approximately 600,000 shares for a total of approximately $3 million and declared a $0.05 quarterly dividend [6][15] Q&A Session Summary Question: Mads, can you highlight your top three priorities going forward? - Mads emphasized continuity in strategy, focusing on customer growth, logistics, and fleet expansion when opportunities arise [22][23] Question: What do you expect the premium to the index to be in Q4? - Mads indicated that while Q4 is not fully booked, there is an expectation for premiums to align with typical levels seen in the business [24][25] Question: Can you discuss your fleet renewal program in the context of asset values? - Mads noted a pragmatic approach to fleet renewal, emphasizing the importance of maintaining a non-shrinking fleet while being selective about new acquisitions [26][27]

Core Insights - FedEx reported a global direct and indirect economic impact of $126 billion for fiscal year 2025, showcasing its significant role in driving innovation and supporting global commerce [1][2][3] Economic Impact - The company contributed 6.6% to the U.S. Transportation and Warehousing sector's total net economic output and indirectly added $7.8 billion to the overall U.S. economy in FY25 [5] Operational Enhancements - FedEx optimized its operations by integrating its surface network into a single transportation system and redesigning its international air network to align with global trade flows [3] - Major investments included the completion of an automated secondary sort facility in Memphis and a new Life Science Center in the Netherlands [3] Trade and Supply Chain - FedEx's expertise in customs brokerage and understanding of global supply chains positions it as a valuable trade partner, helping customers navigate changing regulations and trade patterns [3] - In calendar year 2024, 90% of FedEx's 100,000 suppliers were small- and medium-sized businesses, supporting numerous jobs [3] Intelligent Innovation - The company is leveraging its industrial network and data to develop AI-driven tools that modernize operations and streamline international shipping processes [3] - FedEx expanded its AI-driven digital brokerage solutions to enhance customs clearance experiences and reduce delays [3] Community and Sustainability Efforts - FedEx contributed $55.5 million to nonprofit initiatives and dedicated over 81,000 volunteer hours in FY25, demonstrating its commitment to community support [10] - The company is advancing towards carbon-neutral operations by 2040, with significant investments in renewable energy and sustainable aviation fuel [10]

Core Viewpoint - Matson, Inc. (NYSE:MATX) is recognized as one of the best dividend stocks to consider despite facing challenges from market volatility and tariff-related uncertainties [1][2]. Group 1: Company Overview - Matson, Inc. has a long history dating back to the late 1800s, originally established to connect the US West Coast with Hawaii, and has since expanded to serve US Pacific territories and Alaska, as well as providing expedited shipping between the US mainland and China [2]. Group 2: Financial Performance - In Q2 2025, Matson's operating income from its Ocean Transportation segment decreased compared to the previous year, primarily due to reduced shipping volumes in its China service, with freight demand experiencing a sharp decline in April following the introduction of tariffs [3]. - For Q3 2025, the company anticipates that Ocean Transportation operating income will be significantly lower than the $226.9 million reported in the same period of 2024, mainly due to weaker freight rates [4]. Group 3: Dividend Information - Matson, Inc. has maintained a strong dividend record with 13 consecutive years of dividend growth, currently paying a quarterly dividend of $0.36 per share, resulting in a dividend yield of 1.53% as of October 16 [5].

Company Performance - Knot Offshore (KNOP) shares increased by 8.4% to close at $8.95, supported by high trading volume, contrasting with a 7.7% loss over the past four weeks [1] - The stock has gained 65% year to date, benefiting from high fleet utilization, operational efficiency, and effective fleet expansion [1] Earnings Expectations - The upcoming quarterly earnings for Knot Offshore are projected at $0.13 per share, reflecting a year-over-year increase of 218.2%, with revenues expected to reach $86.33 million, up 13.2% from the previous year [2] - The consensus EPS estimate for the quarter has been revised 26.7% higher in the last 30 days, indicating a positive trend that typically correlates with price appreciation [3] Industry Context - Knot Offshore is part of the Zacks Transportation - Shipping industry, which includes Kirby (KEX), whose stock rose 0.9% to $82.21 but has seen a -3.5% return over the past month [4] - Kirby's consensus EPS estimate remains unchanged at $1.6, representing a 3.2% increase from the previous year, and it also holds a Zacks Rank of 3 (Hold) [5]