Kirby (NYSE: KEX) said it will buy K-Sea Transportation Part (NYSE: KSP - News)for $335.3 million or 1.46x book value. Tsakos Energy Navigation Ltd Co's stockholders' equity was $1 billion as of 12/31/10, with a market cap of $373 million.
No change from March 2011 to July 2011 and will not change unless mgt can get earnings. The liquidating stock mgt issued last fall is 20% underwater. Sad that mgt cannot seem to see excess capacity in the industry and then react and cancel ship orders. Instead, mgt issues more stock so they can buy more ships. You just cannot fix "Stupid"
Exactly, which is why the shareholders have been wondering why mgt has been ordering more ships (assets) and issuing more stock (dilution)when they should have done the absolute reverse: Buy stock, cancel ships.
You can argue that management is managing this company for the long haul or next rise in their business cycle. They kept their balance sheet liquid and very well capitalized and has also upgraded their fleet, with newer vessels.
This is starting to happen. The industry is consolidating, and the anticipated surge in demand for liquefied natural gas (to be used in thermal power plants) from Japan and other counties (i.e. Germany) should increase tanker shipping rates considerable in the future and TNP will be in an excellent position to benefit from these developments.