It seems like the dividend payout should be closer to the .12 to .14 range, not .21 from Q2. Using the Q3 2011 dividend estimate given in last quarters earnings release, average spot rates at or less than 10,000 for Aframax and Suezmax would equate to a .14 dividend.
It looks like the short covering started under $3.60, but TNK is still sub $4 right at the moment.
I see no reason why dividend/distribution will be less than last qtr.
Comments & Discussion encouraged.
the volume is good. But the stock is being shorted to the ground. I have been following tnk all morning. All I see is the price slowing dropping, with no bounces. Im not sure if to add or just stay on the sidelines.
Gold and silver are one of the few Green today but not much either. Bad day overall for the market
Current PPS $4.31, the market in general seems rather jittery, but will we see $4 ??
And who is behind the shorting?
Speak your mind, everyone. What do you think is happening?
Comments and Discussion encouraged.
BTW, I completely agree that end of quarter and end of month caused selling, not buying, in the market the last couple of weeks. In a departure from the norm, portfolio managers probably wanted to show more cash, not less.
Even though nobody agrees I think we will see a major rally in the next two weeks, maybe as much as 10%, as people put positions back on as the calendar turns to a more favorable part of the year.
As Art Cashin says, "the end of the world only happens once, so its not the greatest bet."
Zero risk IMO.
TNK is a subsidiary/sister company of TeeKay. For TNK to go down the whole TK empire would have to collapse. This is why TNK has held up a little better than others in this same space.
For TNK to go bankrupt, we globally would have to not only go back to riding bicycles with those little beep horns on the front handlebars, but also bring back the mules and covered wagons.
TNK has been quick (earlier) to do several secondary offerings at higher prices to raise money (do you guys remember when I said that was very savvy?), plus they also have done the 3yr VLCC loan deal, which was also very smart, generating income no matter what. When I seen that, which was very out of character, it elucidated a transcendental coruscation.