John Paulson (Trades, Portfolio), manager of Paulson & Co., disclosed last week he trimmed approximately 30% off his holding of International Seaways Inc. (INSW, Financial).
According to a Schedule 13-D filing dated March 20, Paulson reported a holding of 2,019,327 shares, down 28.9% from the previously reported number of 2,452,044 shares on March 12.
Company background
New York-based International Seaways owns and operates a fleet of oceangoing vessels engaged primarily in the transportation of crude oil and petroleum products. The company operates in the competitive and fragmented shipping industry: International Seaways competes on several factors, including availability of vessel types, cargo price and quantity, efficiency of operations and experience of crew members.
The company seeks to unlock shareholder value through several initiatives, including actively managing the fleet to maximize return on capital and maintaining an appropriate and flexible financial profile. Despite this, risks include the cyclical nature of the transportation and logistics industry and potential for volatile market value swings in the company’s vessels.
GuruFocus ranks International Seaways’ financial strength 4 out of 10 on several warning signs, including a weak Piotroski F-score of 2 and an Altman Z-score that suggests possible bankruptcy within two years.
Company profitability update
International Seaways reported net income of $7 million for the quarter ending Dec. 31, 2018, up approximately $97 million from the prior-year quarter, driven by higher time charter equivalent revenues and lower vessel impairment charges. Despite this, GuruFocus ranks the company’s profitability a weak 2 out of 10: International Seaways’ three-year revenue decline rate of 18.40% underperforms 89% of global competitors.
See also
Other gurus with holdings in International Seaways include Donald Smith (Trades, Portfolio) and Francisco GarcĂ Âa ParamĂ©s. The latter of these gurus will speak at our upcoming value conference on May 3. Register now and save $200 off the regular price; prices increase by $100 on April 1.
Disclosure: No positions.
Read more here:
