NNA closed strongly today. My hunch is that word leaked about tanker delivery, which I believe was supposed to be delivered in Dec and maybe will be announced tomorrow? Or just random fluctuations? Any thoughts?
Very impressive gains. Rather low volume over $4.20. Since future earnings are beyond by comprehension, sold out today for an 8% gain since my Wed purchase. Good news about this is that it is a good omen for the remining investors.
Spike up could just be that traders have concluded that we have bottomed, and are building a base. And traders have just returned from the holidays, and many stocks have gotten expensive. Not as many bargains out there, and NNA is one.
There may be hard sailing ahead, but NNA's VLCC fleet seems well-positioned for the long haul. Oil is pegged to hit $100/bbl by some 2011 forecasts. I think I see a dividend increase on the horizon late next year.
For the hundreth time, for all the newbies to tanker stocks, the price of oil is largely irrelevant to the business fundamentals of tanker owners. It is only of indirect interest in that it says something about global supply and demand. A barrel of oil afloat on the water bought at $50 is the same as a barrel bought at $100. And a barrel travelling from Venezuela to China is better than a barrel travelling from there to the US.
...and frankly the whole company is pretty well positioned, the VLCCs have above market rates locked in for several years plus profit sharing, adn the product tankers will deliver just as fleet growths moderates or even goes negative.