Too much debt. Even with the deleveraging they will have over a billion dollars in debt for the foreseeable future. Meaning $80 million a yr to service their junk bonds.
Too many shares outstanding. Announcing a share buy back program and not buying one single share of stock to reduce a massive 160 million shares outstanding count makes this a bad investment.
Lack of Dividend increases with NO guidance that there are any on the horizon.
Not being fully exposed to the spot market. They are giving away millions of dollars a month by giving half of their profits away. These geniuses locked up 2 MR's for 3 yrs at $16k a day at the beginning of the yr while the market has averaged $25k per day. They locked up a VLCC at the beginning of the yr for $34k a day while VLCC's have averaged over $60k per day this yr. Someone needs to let them know that the market has turned around and they need to consider just going spot once TC's expire. By looking at their actions they really seem clueless.
This management team is totally unfocused. They are too busy trying to save the sinking ships from their dry bulk companies at NM and NMM.
The only company that is truly enhancing shareholder wealth in the Tanker space is NAT. Let's look at their formula: Virtually NO debt, Exposure to SPOT market rates, Increasing Dividends, Less than 90 million shares outstanding and a management team that is focused on only one company in the TANKER space, their own. Or in other words, everything totally opposite of NNA.