I would guess someone was doing some shorting of some stocks and got caught with a nice big margin call that required him to sell something to cover the margin call. It looked like a panic sell at market.
Navios Maritime Holdings (NYSE:NM) was downgraded by stock analysts at Citigroup Inc. from a “buy” rating to a “neutral” rating in a research report issued to clients and investors on Tuesday. May have something to do with this?
I've been following this stock for a while and there's always a big seller that comes out of the woodwork for no reason at all. I don't get it and I guess I never will. It could be tired long positions because the stock never follows through no matter how good the company performs.
Up 7% on earnings day. I guess its ok to hold a tanker thru earnings!!
"Never hold a oil tanker stock on earnings day no matter how good it is projected"
Glad i didnt take this advice on FRO's ER today!!!!
So I have withheld from adding more shares today as this mess with China still has some working out to do. Obviously the Chinese Government is having difficulty with instilling confidence in Chinese markets.. their fundamentals are not the problem... it's mostly just fear over this transitioning of their economy. I expect tanker rates will start to rev up next month which is the end of the third and most will look to buy up shares for the fourth quarter. I got buy orders in for NNA but they are much lower than current price and have quote triggers.
I'll buy and hold for the dividend.
Good buy in point. If I did not already have shares at this level, I would have added today. All tankers getting destroyed thanks to the whole global economic system getting glitched up.
Anytime you have a dependable dividend payer... there's no reason to sell. I hate owning stocks that pay nothing and move lower because I have to ask myself why I didn't buy a dividend stock instead.
I own a glut of NNA as well. Not happy about the dive to $3.50 here, but it is what it is.
STNG owns a lot of LR2s which are great ships... essentially an Aframax that can carry product or crude. I'm liking their dividend as well.. I only buy shippers with dividend above 5% because I can justify sitting on them if share price experience any weakness. Only concern with STNG is their ownership of SALT. Otherwise I think STNG is a decent company.
I bought NNA because new-building program is complete and all vessels are delivered and in the water... at the right time too since MR2's are still earning an enormous $31k/day... the rate dropped a lot today but it's still double what it's been in year's past and this weakness will be temporary in my opinion... low prices for oil product always leads to buying stimulation and that means shipping will increase. You won't see it initially when oil prices drop, it's a domino affect that occurs. Oil prices drop and week or two later, tankers start to sky-rocket. Low oil prices stimulate economic growth too so this is a great market to buy in.
One other thing, NNA has long-term time charter contracts on majority of their ships so they are not as heavily impacted by falling spot rates and they gain from 50/50 profit sharing when rates are soaring.
I also have some low ball limit orders in place for several of the shippers. Did not think they had a chance of hitting, but today I'm changing my mind! I did buy a bit more STNG already.
They bought a lot of their VLCCs many years ago and they had long-term charters attached which likely already earned back most of the cost for buying those vessels. They bought additional VLCC's at auction a few years ago when used VLCC prices were down and so those ships will have a lower break-even cost to operate than a new-build VLCC or eco-VLCC (eco-type is only really eco at low speed.. remember that when you think eco is better).
Angeliki is a clever business person. I like that she bought up several small container ships (1000 to 3000 TEU) through HSH Nordbank deals. A lot of ports can only handle these small ships and if there is any demand at all for a container ship, it's in the small container ship category. By the way, she managed to get some LR1 and MR tankers in that deal which worked out well in today's market for tankers of this size. These ships all operate under Navios Europe I and II which are owned in part by NNA.