With respect to the entire shipping universe, including the tankers, the whole lot are trading in the same fashion as the homebuilders throughout the late 90's. All the boards are harping the same lament. Namely, why is this stock down when the fundamentals are so good? Well, my own two cents are based in how Wall Street operates. First the next three quarters worth of comparisions will look bad. Second, the analysts are divided about world GNP growth next year. Oil prices have peaked, it would appear. This is rightly or wrongly attached to the price movements of tanker stocks recently. In a nutshell, earnings GROWTH matters on Wall Street. Look no further than GOOG for proof. Also, we are in tax selling season for mutual funds(ending October31) as well as weak retail stock holders who cave when the wind shifts. Bottom line, like the homebuilders, this group will continue to pump out profits, high dividends and buy back shares. With patience this group will come back into vogue when the earning comp's look better. In the meantime, accept that this group is out of favor and wait.
I agree with your thoughts. I bought in for the dividend and the future growth. This is actually a very good time to pick up some more TNP. It seems to be a very well run company with a good executable plan. They have a nice mix of contract charters and spot charters. I believe the stock will do well in the next 2 years. It may go sideways for awhile, but we have decent dividend while we wait.