Mintra - Smart play on Sipping
2022-07-01 10:04Please note: Community posts are written by its members and not by Redeye’s research department. As a reader you’re always encouraged to critically analyze the content.
2022 is the year of shipping. Product tankers and LNG tankers are flying up on RuSSian war on Ukraine. Container ships are flying on supply chain congestion. We like the Mintra idea, that was brought by Pareto Securities. It is a high beta trade on growth in Shipping and Energy. While most Shipping and Energy stock may not double from current levels this year, Mintra is a good doubling candidate for this year.
Mintra – Smart Play on Shipping and Energy Boom
2022 is the year of shipping. Product tankers and LNG tankers are flying up on RuSSian war on Ukraine. Container ships are flying on supply chain congestion. We like the Mintra idea, that was brought by Pareto Securities. It is a high beta trade on growth in Shipping and Energy. While most Shipping and Energy stock may not double from current levels this year, Mintra is a good doubling candidate for this year.
- Mintra (www.mintra.com) provides online training courses mainly for shipping and energy.
- Mintra was listed last year in Norway at 9.70 NOK at the end of 2020. Ticker MNTR
- Mintra was hammered in the pandemic – the crew teams (on shipping boats and energy platforms) did not rotate due to Covid.
- Lower crew rotations resulted in lower use of e-learning courses.
- The situation turned around now – shipping and energy companies are in the best shape for years, generating best profits in decades. They spent more money on hiring and crew rotations – Mintra should be the beneficiary of the shipping and energy turnaround.
- in 2021 Mintra acquired and successfully integrated SafeBridge.
- SafeBridge was losing cash, it is now profitable under Mintra wings.
- Mintra already has a 50% market share in the segment.
- Safebridge acquisition decreased competition and increased Mintra pricing power
- Mintra will grow by the increasing use of its courses by its existing customers, new contracts and acquisitions
- Mintra guided last year 10% revenue growth for 2022. Pareto analyst believes it is too conservative. It does not reflect the current boom in Mintra´s target sectors. The consensus is low.
- 1Q22 was Mintra´s best quarter ever – Mintra generated a 10% FCF yield in the quarter. That is 40% annualized FCF! They can generate CF equal to their market capitalization in 2.5 years.
- Next quarter is most likely much better than Q1.
- Pareto analyst has Mintra as a top pick in his area.
- SpareBank weekly research shows Mintra as one of the cheapest stocks in the sector.
- Mintra share price is up 70% from its March lows of 2.5 NOK to current 4.3 NOK. Still well below the 9.70 NOK listing price tag.
- Mintra is our doubling candidate from these price levels. It is a very good proxy to play shipping and energy boom. While most shipping and energy will not double from these levels, Mintra easily could.