Asia’s Marine Stocks Demonstrate Small is Beautiful

by K.K. Chadha and Marine Money Staff

The share price of Orient Overseas International Ltd. (OOIL), parent company of Orient Overseas Containers Lines, gained 68.33% last year, making it Hong Kong’s best performing stock on the exchange.

OOIL counter closed at HK$5.05 December 30, after registering a low of $2.775 and a high of $5.75 during 1994. The OOIL outperformed the Hang Seng Index, the main barometer of the Stock Exchange, by 145.04%. (During the year, the Index fell 32.23% to 8,191.04).

What was its secret to success? OOIL has completed an eight year restructuring program and produced better than expected results. It also ordered 4,959 TEU ships from Japanese and Korean yards. And the Company is rated at a discount to asset stock with a breakup value of no less than $9.00 per share, according to the January 1995 regional research report of Credit Lyonnais Securities.

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