Tesla vs Shipping Companies

TESLA it’s all a lot of noise!

I have followed Tesla for some time now and there are a lot of people talking about Tesla especially in regards to their share price and the ridiculous PE ratios around the 300+/- mark depending on the day. Considering all this, including the latest IPO of EV maker Rivian, with a market cap of approximately USD 100 billion (more than Ford) you definitely can say the EV sector is hot.

So where else could you have found some value in the market over the last 18 months? I thought let’s have a look at the top 10 publicly listed shipping companies as the shipping costs for a 40 foot container from Shanghai to Los Angeles has risen from USD 2,500 to around USD 10,000, whereby since August they started to decline.

Anyway I had a look at those companies and have come across Orient Overseas International Ltd. If you would have bought that company early 2020 at USD 4.00 and sold at around USD 20.00 in September 2021 you would have made 400% profit. The interesting part for me is the company has a PE ratio of 3.03 and free cash flows of USD 4.12 billion and a Price to Book Value of 1.9133. Have a look at their half yearly results June 2021, eye watering! This is value investing for me.