thought the tanker sector was doing well. . .like one day a few years ago - Coke was upgraded and downgraded in the same day by analysts - the Marketwatch headline was - - -drum roll. . . ."The Glass is half empty or half full". . .me thinks BofA and Jeffries see a different picture here. (disclosure - I own both, plus TOPT,FRO)
<<me thinks BofA and Jeffries see a different picture here>>
I agree with both of their changes-BofA had SFL as a buy, and now it's neutral. When they issued their buy (2005, at $20 and 10% yield), SFL was definitely a good deal. Now, at $30 and maybe 7%, it's less obvious. Jeffries had VLCCF as a sell, and now it's neutral. When they issued their sell (2006, at $25) they misjudged market sentiment. VLCCF trades well above historical valuation now, but it's likely to yield ~$2.80 or maybe 9% going forward, more stable now with 80% fixed contracts. Maybe folks are willing to pay that much.
I don't think that I'd buy either SFL or VLCCF now, but I'm not selling what I have. Anytime the analysts agree with me, they must be right :)