I warned shareholders that these shares were going to decline significantly about one year ago.
Now I am back to update my take on the sector. This is not ending, expect more of the same for July, August and September quarter.
I see no change in the results for at least another 6 quarters. Where could that leave Tsakos. Well, take the $18 million loss this quarter and multiply by 6 times.
More equity is going to be wiped out. Already I am right as to a decline of more than 25%. I see another 25% during the next 12 months.
Sorry you did not listen. Remember more ships are leaving the ship building yards. Deliveries still being made for the next 12 months in big numbers.
U.S. one of the further points on the planet from middle east oil is taking less each year while taking more from Canada. Expect another pipeline to be approved from Canada to the U.S. during this quarter and two years later U.S. will take more oil from Canada and less from Middle East. Also, the China demand is unfortunately a short route from the Middle East.
The real problem is that there will be more capacity of shipping volume in 2012 than 2011. That is the real problem.
Suggestion, dump all your shares now and re-visit the shipping story in a couple of years. Plenty of time to determine when this will turn.