Book value per ProVest is 11.19 and the contact with BPis good till Sept2004.Therafter it is renewable yearly for seven years.There seems to be no business reason for stock price drop except for the dividend which is currently just the basic contract amount.It will go up if tanker activity increases and day rates rise,but will no go down. Stock sells below NAV WITH 11% DIV.Excellent buy. SINGHMAN 19
VLCCF contract with Shell is for one seven year renewal, if they renew then they are good for 7 more years. NAT renewal is seven one year renewals, they can reevaluate the contract each year. Makes NAT more risky IMHO.
Depends on how you see it. Could well be that BP doesn't want to renew a contract for 7 at once but that they DO want to renew a one year contract (is much better for them) and reevaluate it each year. Ofcours IF BP renews the VLCCF contract it's good for VLCCF (stock will certainly go up) but this is still a 'IF'.
Interesting that NAT has contract with BP expiring in 2004 and VLCCF has contract with Shell also expiring in 2004. Both contracts seem to have options for 7 year renewals. Was there a reason for such contracts and does that provide any insight to whether or not contracts will be renewed?