Since this is probably dead money for the next several years and it seems to be declining at a greater % rate than the rest of the market, keeping in mind that one buys when there is blood in the street. At what range is this stock a compeling buy? I would think ,if the stock market doesn't crash, somewhere in the range of a 1-1.75 dollars would be appropriate.
I'm looking to diversify my holdings out of drilling stocks.
Looking around, I was looking for a large cap stock with good liquidity and in a growth market with assets.
That's when I stumbled acorss TOO.
Thing is, there's not much activity on their board.
This is one of those MLP companies I believe where stockholders are paid a divi to reduce tax liabilites.
The thing that confuses me is all the variations of Teekay. Are some more liquid than others? I see there's a lot of chatter on TNK board, yet TOO and TK have almost zip.
WHy is TNK falling, yet TOO is rising? Is water transportation is good market, or as some of you have commented, this stock won't grow until a few years from now. Is dry bulk shipping that bad, and hence expediture (buying more ships) high at the mo, thus no opportunity for growth?
Hope you don't mind answering this newbie question. Been tracking this stock for a few weeks, but behaves weird
It's extremely low now, based on camparisons to its peers and every other reasonable measure. Unlike many others in this sector, TNK has ZERO chance of bankruptcy or any serious financial issues for at least a few years. The balance sheet is solid, AND they have the support of thier parent TK who is doing very well. I would say it is a great long term buy right now, recognizing that one can never capture the absolute low. TNK is guaranteed to survive even if rates actually go down for the next two years or longer. How many comanies in this sector can say that.