TEXTAINER: BOXED AND SHIPPING TO FIVE-BAGGER LAND

• Container leasing industry at cyclical trough, signs of recovery materializing, and Mr. Market is asleep at the wheel. Now is the time to get in.
• Largely owned by retail income investors accustomed to 5-10% yields, the poor recent financials and (prudent) near-complete dividend cuts explain the massive decline in container stocks and Mr. Market's pessimism.
• Textainer is the best play in container leasing right now.
• Attractive valuation relative to book value, comps, and maintenance FCF.
• Risks include 2018-19 refinancings, various threats to world trade, and a global economic slowdown.