Not much enthusiasm yet. Market is up over 2.5%, and NNA is exactly flat, at 2pm eastern. This company is off the radar, for most investors. Agree it is buying opp, but it may be for awhile, I think until those product tankers get closer to hitting the water.
Accumulation is ongoing. Time to get in now in the low 3's before it shoots up. It's hard to get many shares most days, but I've picked up several more thousand recently, and have averaged down considerably.
We'll see more volume, for sure when ex-div approaches in a few weeks. Until then, I expect we'll track with the DOW. Although volume has been low, $3 may mark the low, unless DOW decides to reverse in a big way. I've started reaccumulating (when I can get the shares) in this range, averaging down. GLTA
Sell to buy... S&P looking favorably on the chartering aspect for crude tankers. (read NNA)
"We view FRO as being a mostly spot market player, with only about 33% of its fleet fixed to time charter contracts. But the company plans to increase its fixed charter coverage, which we believe will help mitigate the effects of a volatile spot tanker market. In our view, this change should ultimately result in less erratic sales, EPS and dividends over the course of the business cycle. Longer term, we see sales and EPS rising on a secular increase in demand for oil and iron ore along with a gradual abatement of excess global vessel supply."
An increase in the divident by 1 cent per share would only cost them $100,000 more per quarter. Current cash flow could justify the move. I would think at this point AF knows that this stock has slaughter shareholders. From $10 per share to $3..That is a huge destruction of wealth under her leadership. While I believe she is making all the right moves almost every segment of the shipping industry is in distress mode at the moment. The one cent increase would pop the yield to .077%. She owes the long term shareholders to put a floor on any further downside on this stock which an increase would do. With all this being said, I doubt an increase will occur this quarter. I am definitely looking for the increase after the 9-30 quarter where they will be reporting their first profitable quarter.