Nordic American Tankers

A lost decade for shipping stocks

burning cash

A decade after the Great Recession, shipping stocks once again wallow in a sea of red, with yet another plunge on Friday due to coronavirus fears. 

There’s a sense of deja vu, not just because there’s another global crisis, but because there has been so little evolution in the public shipping space over the past 10 years.  Shipowners on Wall Street were supposed to mature into the kind of blue-chip, consolidated, corporate, creditworthy investment vehicles that are coveted by the long-only funds...

https://s29755.pcdn.co/news/a-lost-decade-for-shipping-stocks

Supertanker rates collapse: ‘The dam has burst’

crude tanker

Some sayings pop up again and again in shipping circles: “The way to make a big fortune in shipping is to start with a small one.” “Moving cargo is what you do between buying and selling ships.” “If analysts say the market can only get worse, buy.”

There’s also one that goes: “If there are 98 ships and 101 cargoes, boom, 98 cargoes and 101 tankers, bust.”

Alas, there are now a lot more tankers than cargoes. Rates are sliding, owners are capitulating, and charterers have the upper hand.

Rates for...

https://s29755.pcdn.co/news/supertanker-rates-nose-dive-the-dam-has-burst

Can dry bulk woo stock gamblers who bet on tankers?

gambling

Dry bulk has tanker envy in 2020.

Dry bulk was where day traders placed their bets back in the day, in the mid-2000s, but this year, investors on Robinhood and other retail platforms have instead put their chips on floating storage and stocks like Nordic American Tankers (NYSE: NAT).

Here’s the emerging dry bulk shipping pitch: Dry bulk stocks trade in relatively high correlation with spot rates and unlike tanker stocks, they don’t face a painful floating-storage destocking phase. Dry bulk rates...

https://s29755.pcdn.co/news/can-dry-bulk-woo-stock-gamblers-away-from-tankers

‘Robinhood effect’ spread unevenly across tanker stocks

raging bull statue

It is the year of the retail investor, and listed shipowners, like other public companies, have seen a wave of newcomers buy their stock.

Shipowners are happy. They need all the buyers they can get to boost their tepid trading liquidity. Retail buyers of shipping stocks are not so happy. In the case of several tanker equities, retail enthusiasm appears to have been heavily countered by institutional selling.

Diverging from fundamentals

Retail investors are getting a lot of ink, much of it...

https://www.freightwaves.com/news/robinhood-effect-spread-unevenly-across-tanker-stocks

Can shipping shares catch wave of (ir)rational exuberance?

Wall Street

To the growing bewilderment of skeptics, equities continue their rally, trading as if the recovery is nigh, there will be no second-wave lockdowns, and government largesse will offset unemployment.  

The S&P 500 closed at 3,232on Monday, up 44% from its March 23 low and down less than 1% year-to-date (YTD), effectively erasing its losses for the year.

“The broader equity market is beginning to buy into the idea of a rapid recovery to the extent which just two months ago I would never have...

https://www.freightwaves.com/news/can-shipping-shares-catch-wave-of-ir-rational-exuberance

Tanker stocks eke out more gains as storm clouds gather

crude tanker

The Dow jumped 829 points Friday on shockingly high U.S. jobs numbers. Even in the topsy-turvy world of tanker stocks, where good news can often be bad news, equities ended green across the board.

Tanker stocks posted low- to mid-single-digit gains on below-average trading volumes. Nordic American Tankers (NYSE: NAT) rose by 7.8%, Teekay Tankers (NYSE: TNK) by 6.1%, International Seaways (NYSE: INSW) 5.8%, Scorpio Tankers (NYSE: STNG) 5.5%, DHT (NYSE: DHT) 4.1%, Frontline (NYSE: FRO) 2.6% and...

https://www.freightwaves.com/tanker-stocks-eke-out-more-gains

Inside the ‘mind-blowing,’ ‘crazy,’ ‘insane,’ ‘ridiculous’ tanker sell-off

crude tanker

The plot thickens.

On Wednesday, U.S.-listed tanker stocks reported record-high results, executives confirmed strengthening rates on conference calls, the broader stock market was relatively stable (at least until the last hour), the price of crude oil declined … and yet, stocks of tanker owners fell sharply in heavy trading.

It was “the craziest price action I’ve seen in my nine years covering the space,” Jefferies shipping analyst Randy Giveans told FreightWaves.

There have been plenty of bad...

https://s29755.pcdn.co/news/inside-the-mind-blowing-crazy-insane-ridiculous-tanker-sell-off

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