Textainer Group Holdings (TGH), mcap=$1.5bn, price $31.87 vs $26.83

– The second largest container leasing company.
– 50% of portfolio container leases signed over the last two years – which was the biggest boom in shipping and container markets.
– It is likely these leases were signed on very favorable terms for $TGH at high rates and for longer periods.
– Trades at a material discount to book, when book value or premium to it is deserved.
– Well positioned to repurchase 15% of stock a year.
– Set to earn $8-$10/share in three years.

– Trades under 10x through earnings, material discount to book, and even steeper discount to intrinsic value.
– At 1.1x BV worth 40-50% more.

Exp. gain: +50% to $40/share.

Full $TGH write-up (free guest account required):

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