I'm looking at this issue and have a quick question for those of you that have been in it for some time. In the past 12 months, noticed it lost half of it's value from the 50 range down to 25. Why is this? I searched News; but could not come up with the answer. Moringstar brought it to my attention so thought I'd take a look-see. Thanks doon
At pps of 50, VLCCF was selling at more then a 100% premium of the value of its five vessels .Other shipping companies were selling at a much lower ratio. At the current pps, the capitalization of VLCCF is near the value of the five vessels on the used tanker market. I think VLCCF will level off near current pps. Also, the short term interest rate has increased during this period making dividends less desirable to many investors.