MIDAS SHARE TIPS UPDATE: Shipping giant is riding the waves
MIDAS SHARE TIPS UPDATE: Economic conditions are turbulent, but shipping is afloat and industry specialist Braemar is riding the waves
Economic conditions are turbulent around the world, but the shipping industry is vibrant and specialized in the sector braemar rides on the waves. Chief executive James Gundy recently announced record results for the year to February 28, doubling profits to £20m, raising dividend by 33 per cent to 12p and expressing confidence in the company’s long-term future .
Midas recommended Braemar in 2020 when shares were at 99p and the company was in the middle of a turnaround strategy after years of underperformance. Today the stock is £3.03. Non-core divisions have been sold and the company is now fully focused on what it does best: helping shipowners and their customers move goods reliably and cost-effectively around the world.
Riding the waves: Midas recommended Braemar in 2020 when shares were 99p and the company was in the middle of a turnaround strategy
Cargo includes oil and gas, heavy metals, wheat, grain and logs, even sacks of cement – all essential commodities in demand around the world. Until recently, traders tended to sign one-year contracts with shipowners. Now companies are eager to land deals. Five-year contracts are becoming more common, giving Braemar more certainty about the future.
Gundy, a shipbroker with nearly 30 years of experience, has also expanded the business by opening into new parts of the world and increasing its presence in the lucrative shipping finance and futures markets.
Midas verdict: Braemar shares have tripled in three years and supporters believe they could rise even further, from £3.03 to more than £4.50. With dividends set to rise over time, the stock is a solid foothold for all but the most cautious sailors.
Traded on: Main market Ticker: GBS Contact: braemar.com or 020 3142 4100