Tankers strong today

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Fraser921
Posts: 3070
Joined: Mon Mar 22, 2021 11:48 am

Tankers strong today

Post by Fraser921 »

Good earnings driving a re rate

ASC up 15.6%

TRMD up 4 % to 36.38 > recommended this at 9.00 and you collected 10.41 in dividends
Apr 15, 2024 1.36 Dividend
Nov 21, 2023 1.46 Dividend
Aug 28, 2023 1.50 Dividend
May 22, 2023 1.46 Dividend
Mar 24, 2023 2.59 Dividend
Nov 22, 2022 1.46 Dividend
Aug 31, 2022 0.58 Dividend

STNG to report soon up 3 % to 75
aja57
Posts: 395
Joined: Sun May 29, 2022 10:35 pm

Re: Tankers strong today

Post by aja57 »

TORM put this on their website but no media press. Great #s . Divi 1.50

https://www.torm.com/files/doc_financials/2024/q1/Q1-2024-Report-Final2.pdf
Lbark
Posts: 132
Joined: Fri Jul 07, 2023 5:46 pm

Re: Tankers strong today

Post by Lbark »

what was your reaction to STNG conference call. i invested in STNG, tk and tnk, UP on 2 of the 3. debt repyament sounds great. havent listeded to tk call yet. what is your outlook for the tanker market going forward? thanks.
Fraser921
Posts: 3070
Joined: Mon Mar 22, 2021 11:48 am

Re: Tankers strong today

Post by Fraser921 »

I like them all. I also listen to STNG. They have a newer fleet and using the cash to pay down debt. Analyst raised target price close to 100. It's in the strongest sector with the best valuation and printing money. Rates are still rising including today.
The ceo , Bugbee, is using HIS OWN money to buy a bunch of call options. I never seen anyone doing that in any name. So he is telling the world its undervalued

https://seekingalpha.com/news/4067970-scorpio-tankers-says-its-president-bugbee-buys-call-options

Tk doesnt have a call. It's equivalent to an ETF with 2 holdings Cash and TNK stock

It owns 9.8 m shares of TNK + 300 m cash. It's worth 1,000 and trading at 800 m.

TNK has midsize tanker rates and making solid money

Yesterdays presentation

https://www.teekay.com/wp-content/uploads/2024/05/TNK-Q1-24-Earnings-Presentation.pdf

Key drivers is crude demand. We are getting into summer driving season. canadian crude has been land locked due to Biden cancelling keystone so canada built its own pipeline East to West called TMX. That's coming online which will help CAD producers realize higher selling prices. Once it gets to Vancouver, It helps TNK as a ship has to come in and bring it somewhere

Expansion of the Trans Mountain Pipeline to provide a new source of Aframax demand from Q2-24 onwards. The company is debt free has 50 tankers, and has plowed all the cash into getting debt free. Looking into the future the need to replace assets that are getting older. They pay about a 5 % yield but are earning 20-25%. Slide 8 shows the cash yield with current rates

I like them, but prefer owning it indirectly by owning TK. As Tk sells at a discount and 30 % of the 1,billion NAV is in cash. Also they have voting control over TNK. They will be getting another 22 m with this qtr TNK dividend

Product tankers are earning more at the moment so I like the 3 you mentioned in this order
1. stng
2. TK
3. Tnk > Its ok to take profits in this name or any others. It's moved from 10 to 70. Analyst have TP of 80.
I did some trimming in STNG but still long the name

And the sector is volatile. If you long other names in the EP sector you have a long bet on energy going forward even though the politicians are doing everything they can to F it up. Perversely, that adds to the bullish sentiment
Fraser921
Posts: 3070
Joined: Mon Mar 22, 2021 11:48 am

Re: Tankers strong today

Post by Fraser921 »

3 must follows if you are interested in shipping are these 3 people on Twitter

https://twitter.com/christankerfund > Is a CPA and follows shipping
https://twitter.com/ed_fin > Journalist , likes anything that floats and makes money
https://twitter.com/joeriwestland > Former poker pro, Understands the term "EV" expected value. He likes value stocks that have a good chance of generating cash. Container stocks, ZIM


Ed posts broker comments.. latest on STNg Check these all out, copy and paste

https://x.com/ed_fin/status/1788918269421781500
https://x.com/ed_fin/status/1788860049491698006
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