Deutsche Bank downgraded Teekay Tankers (NYSE: TNK) from Buy to Hold, price target lowered from $12 to $9.
Deutsche analyst says, "While TNK trades at a material premium to the group, we believe this is the result of its high current dividend yield of 12.1%. However, we see the possibility for volatile dividends over the coming year. If the market remains weak and current fixed charters roll-off, its distributions could decline and there will likely be limited upside to the shares."
Deut...Bnk can do whatever they want to do, the entire market is getting hit. Cancelled Limit Order at $7.97 yesterday and reset to buy at $7.49, that order was filled this morning. Average down if you'r in this so stay, Coursonc, interested yet?
When it cmes to Genco (GNK), I would agree, their release indicated a much lower income stream, but ready cash remained about the same level. The only good thing happening right now is that scrappings for 1st half 2011 are 219% above last years', an indicator that older vessels are not worth refitting to newer emissions standards. What does it mean for TNK? I'm not sure, the entire sector is suffering along with most of the market, but I think if TNK falls below $8, it might be worth picking some up for speculation. Theory to be tested, I have a limit order for $7.97 set now. Best to all, comments and discussion encouraged.