HEY! Growing Earnings Don’t Matter

HEY!   Growing Earnings Don’t Matter

I think you have to be very humble about your ability to be smart enough to exploit other people’s stupidity.”

Navigator’s stock price declines while its earnings rise over the past two years. See page 14 here: Capital-Link-Conference-Mar-21-2016

Wilbur Ross owns a majority position http://whalewisdom.com/stock/nvgs

Seth Klarman’s 2021 Letter: Baupost’s “Never-Ending” Hunt For Information

Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More

I am not suggesting this as an investment for YOU, but seek out disconnects like this. Despite rising earnings, the market may be worried about lower oil prices because lower oil prices may affect the demand for the products that NVGS ships and/or the capex that NVGS is bearing with delivery of new ships. The question for an investor would be: “Has the market over-discounted the fears of low oil prices or over-supply of ships?” This company is VERY different than a standard dry-bulk shipper. These are highly-specialized/expensive ships. Knowledge reduces risk, so really understand the management and its goals.

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