If the product says, “Made in China”, or “Made in India”, it is likely most of it didn’t arrive via air. There are some big aircraft, but no where near as many that would be needed to move the products that are produced in the Asian countries. One small cap international stock I recently rebought was Global Ship Lease (GSL).
Global Ship Lease, Inc. owns and charters containerships of various sizes under fixed-rate charters to container shipping companies. As of March 10, 2021, it owned 43 mid-sized and smaller containerships with an aggregate capacity of 245,280 twenty-foot equivalent units. The company is based in London, the United Kingdom.
GSL Transaction History
My first buy of GSL was 100 shares in my ROTH IRA for $12.99 per share on February 8. I sold the shares for $16.27 about a month later on March 18 for a profit of $328. That was a ROI of about 25%. On March 26 I rebought the shares at $15.75. As you can see, my reentry price was less than my sale, but considerably more than my original price. The stock is currently trading for about $15.30 per share. My opinion is that the stock price will increase as the Suez canal reopens and as trade flows more smoothly again. This is a short-term position, so if the price jumps in the next month or so, I will likely sell my shares.
TECK – Teck Resources Limited
Because the trade confirmation with this post shows I also bought 100 shares of TECK, a word of explanation is in order. TECK was founded in 1913. Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. It operates through Steelmaking Coal, Copper, Zinc, and Energy segments. The HQ for TECK is Vancouver, Canada. I paid $19.09 per share. As with GSL, I view this as a short-term investment. Like GSL, TECK is speculative, but it has a significantly larger market cap of $10.17B.
A Word of Caution
For those who focus on ETFs and mutual funds, I would say you should avoid buying investments like this. However, if you have $1M or more in retirement assets, there are short-term opportunities with significant profit potential based on the momentum of the market.