Its a pity really. The oil refiners should be paying more for the transportation of its product. instead they choose to exploit market forces. they are like kings watching the peasants beat there own children to produce more gains for them. but history is like that isnt it? It was the negroe war loads who in fact sold there own population into slavery.. whitey didnt come around with a butterfly net capturing negroes for the boat ride. its a pity, no shipper should carry 1 cargo for less than profit. anyway i beleve this quarter OSG will only report a loss of 18 million. and thats better than estimates and better than last quarter. Based on the "better than expectations headline" stock could rally up to 15. overcapacity is having a very serious effect.
Historically stocks trade lower with dividened unattached from the share price. OSG should not be paying a dividend on borrowed money.Think about it. there was another shipping company called ussp, they were induced by lehman brothers to become an MLP. they had vision,wall street levered them to the eyeballs. the ceo left handsomely with the cfo. guess what,they failed. when have to borrow money from the devil,you fail.