They are poorly run enterprises from an investors' perspective. Yet, occasionally, they offer good risk reward. Such companies are good as asymmetric bets with tiny potion of the portfolio and with a short time horizon (below 12 months).
Mihail,let me see if I got it. The Tanker tesis is similar to Dry bulk one: aging fleet, low shipyard capacity, and low order book. Right? One doubt: the tanker tesis is dependent on Brent prices like Drillers and Oil stocks? Thanks!
Correct. The common traits are an aging fleet, low order book, and limited shipyard capacity.
The price of crude is important but not as important as for E&P companies. The latter is profitable when the oil goes up. When the oil is down, oil drillers are tanking.
Tankers, on the other hand, prefer cheaper oil. Fuel expenses reach reach 25-30% of total expenses. The cheaper the oil, the lower the fuel costs.
Both shitco's are well known by never-ending legendary dilution and destruction of shareholders' value.
They are poorly run enterprises from an investors' perspective. Yet, occasionally, they offer good risk reward. Such companies are good as asymmetric bets with tiny potion of the portfolio and with a short time horizon (below 12 months).
Good luck with outsmarting the crooks who announce some action and do something opposite the next day! 😁
Thanks! Definitely, I need it :)
Mihail,let me see if I got it. The Tanker tesis is similar to Dry bulk one: aging fleet, low shipyard capacity, and low order book. Right? One doubt: the tanker tesis is dependent on Brent prices like Drillers and Oil stocks? Thanks!
Correct. The common traits are an aging fleet, low order book, and limited shipyard capacity.
The price of crude is important but not as important as for E&P companies. The latter is profitable when the oil goes up. When the oil is down, oil drillers are tanking.
Tankers, on the other hand, prefer cheaper oil. Fuel expenses reach reach 25-30% of total expenses. The cheaper the oil, the lower the fuel costs.
Thank you!