DAC, Good way to play the marine shipping group for NYSE:DAC by NAK1987

I have taken a long on todays price action. I really like this story because I think they are the best way to gain exposure to the marine shipping group while being more protected against the eventual return to normal of shipping costs.

DAC charters to marine shipping companies. I was originally looking into ZIM and EGLE as potential buy candidates in that order but then I loved ZIM’s chart and relative strength but then I discovered they lease all their freighters and since charter rates are up I decided that EGLE , which also has a nice chart/fundamentals but owns its ships outright would outperform . But then I decided on an option better than both those options . Why not buy a strong name that charters to the distributors . So then I found DAC .

Delivery costs are way up , 50% more on some contracts apparently ! . But , so are charter costs .

I think that delivery costs will eventually cool down but I think there is a good possibility that charter costs will remain somewhat elevated going forward and is potentially a smarter play .

I see that DAC’s institution ownership has gone up Q/Q and that their fund ownership accounts for 51% of float .

The group is strong

The earning and sales data are very good 2021 and 2022 eps both revised up. EPS within the 13$ annual range .

I also really like that although much of the shipping industry was trending significant losing years around 2014 , DAC was profitable every year around that period .

Earnings are due May 10th so be aware , took a starter today .

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