Still don't get the preference for FRO over NAT when NAT has outperformed FRO for some time and has a much higher yield. Can anyone explain that?
One would think we are at the bottom. My last buy was at $2.70. Thinking I should add. Distribution coverage now around 4.0, supposedly. Need to read up on that.
I sold GLOP at $19.70 with a $19.00 cost basis on a trade I started on the 18th. Didn't get the dividend but I'm satisfied with a 3-4% gain with more than 2 months to go before the next x/d date. A secondary offering might be just around the corner. Bot back SFL and entered a new GLOP buy order so that's it for today. My holiday may be a rainy one but we will be at the lake with our kids and their kids, giving rides on the golf cart and eating brats and bass (hopefully). It's amazing what we take for granted given the sacrifices of service men and women that made it all possible.
I currently own MAIN in a quasi-checking account. Is there a tax-free fund that comes close to a 6-7 percent yield? Not that I would sell MAIN, but I could add a second one to that account.
I took my hits on WFC and sold out at $49 and $50. I will miss the next rate increase, which will come sooner or later, but watching and waiting for it seems too similar to watching paint dry. Got an order in to buy SFL today. Earnings report next Tuesday, I believe.
Sold part of my GLOP position. Got a feeling a buying opportunity is not too far off. Course, it might just as easily be a better selling opportunity but a profit is a profit.
Not holding my breath either. In fact, not holding SFL, after today. Sold at $16.00. "Bird in the hand, etc." Thought I had the dividend too, but no, so another dip would be OK by me. There are also several good BDCs out there with ex-div dates in early June.
Amey Stone has a lot of good stuff. I like the BDCs and own both ARCC and HTGC mentioned as favorites. Also own NMFC, MAIN, TSLX, GBDC and TCPC. All first-tier, except for TCPC, which is usually in the 2nd tier according to Wells. BXMT is my only REIT.
I wish SFL: management would give some indication what they intend to do with the FRO stock. If they sold today they would have a substantial gain. Maybe they are waiting for the right opportunity to re-invest or otherwise deploy the proceeds. Maybe they need to identify some charge-offs before taking a gain. They can't be thinking the crude market will not weaken, so why not sell those shares now? I assume FRO will need help to pay for ships on the way. SFL could well be part of that picture.
I am not itching to buy a containership stock but would probably have bought SSW when it went under its secondary price ($14.70). Didn't have the room or the cash on hand. I now own 21 stocks, down from a high of over 30. Also de-emphasizing trading. It has been a good way to get an additional edge on the buy and hold approach but time spent on number crunching and playing with spreadsheets takes time away from keeping up with the stocks I follow.
If not for the market, lower energy prices are good for the overall economy. And good for my midstream energy stocks, infrastructure stocks and BDCs. Things have gone well for me also since the end of January.
It won't bother me if rates stay up for longer for containers and crude tankers. I am sticking with NAT, CPLP and SFL for now. BTW, I forgot to include SDRL in the list of companies where JF got too far ahead of the curve ordering new assets.
I hadn't heard that one. Are you referring to the takeover by CSM CAG (or whatever it is)? Truth is, I have an underlying assumption that the Chinese government will prop up, bail out or otherwise support Chinese companies, many of which it has substantial ownership of already. SSW is a large company and while I don't think China has an actual equity stake, I do think they have a special relationship with other Chinese companies. My opinion is more influenced by the size and relative financial strength of SSW which has been only improved with the recent decision to not raise the dividend last quarter and the fact that they could pull off a secondary offering at a price which doesn't appear to be unreasonable.
Speaking of Lloyds Shipping News, did you see the headline about reduced storage demand and predictions that 2017 crude tanker rates will be only one-half of current rates? I realize FRO is a much stronger company now than it was prior to the merger with FRO 2012, but FRO also has a number of new vessels to be delivered and paid for in the near future which introduces uncertainty as to how they will pull that off. Seems to me JF has a history of loading up on new assets only to find himself in a bind when rates fall. He did it with FRO, VLCC, GLNG. I prefer NAT which has shown how it manages through tough times.
I agree SSW is a buy but I'm low on cash and don't have anything ready to sell. Now at $14.62. Perhaps it will go lower. Wondering if they are battening down the hatches for tougher times ahead. Yield is solid, IMO, but may not be increasing its dividend for awhile.
I took a profit on ARCC last month (sold too low) and took the opportunity to buy it back today ($14.59). Goes ex-div in a few weeks so may sell before then, but I like it as a hold if the trade doesn't happen. ACAS management had a plan to grow NAV and restore its dividend but couldn't pull it off. ARCC is a strong BDC with good management acquiring a weak one that chronically trades at a significant discount to NAV. Seems to me to be a good point to jump back in.
ETP is my largest position so I like that news. Can't go wrong in energy midstream these days. The MLPs I own have been doing great and still have a ways to go before the end of the year, IMO. I have been accumulating when I have the cash in the account and the opportunity... ETP under $35. EPD under $26. MMP under $70. All seem reasonable to me. Want to be adding to TRGP and WPZ also but the dang things won't go down. TRGP has lots of room to run, IMO, as it is a C-corp and pays a dividend at a rate over 8%. Reminds me of the early days of KMI. Also took a position in SE recently with a similar rationale. As you may know, SE, WPZ and KMI are major players in meeting the growing nat gas demand in the northeast.
FRO has many newbuilds (VLCCs and Suezmax) to be delivered and paid for over the next 2 years (or less). They will need over $1B in financing. Their debt to capitalization ratio is a bit over 0.50 which is OK for the sector but the new financing will more than double their current debt and debt ratios will be significantly affected. Not the greatest situation if we are now headed for a lower rate environment. Then again, there's NAT which has one of the best debt to cap ratios in shipping and they are also down in recent days.
A few good dividend stocks I follow are going ex-div soon. BEP and BIP (which I own) on the 26th. GBDC on June 2nd (which I intend to buy), and ARCC and NMFC around June 12/13 or so. (I also own NMFC.) Seems like reasonable prices.
When the price of oil is on an uptrend, the demand for offshore storage in tankers begins to evaporate. The only reason a trader buys oil is on the chance he can sell it at a higher price a few months from now. Day rates will have to fall leaving vessels in the spot market unable to find charters.
Unless it changed, the FLSA defines OT for a non-exempt employee as hours worked over 40 hours during a defined 7-day work week. Vacation, sick leave and other paid time off are not included. A 12-hour day doesn't automatically confer OT.