NNA will likely "dollar cost average" the long term charters as the year progresses.
I don't bother with formal estimates for NNA. I do think that profit sharing is not fully in the analyst consensus at the moment. Those lazy buggers will probably update their models just before earnings, but it would not surprise me at all if there is an extra 10 cents of spot exposure and profit share related earnings to be had in Q4 over the current 5 cent EPS number you see on yahoo.
I'll have some of what you are smoking.
This is the US: every investor is free to choose whether they invest in mutual funds, individual issues, Iraqi Dinars, MREs, whatever. It should tell you something that most retail investors in the US make use of mutual funds and ETFs.
BTW, the use of the two IDs is "cute."
Shareholders own and control the company in virtually every case. It is up to them and their elected directors to do what they wish with the company. Welcome to America, comrade.
Dividends are determined and declared by a company's board of directors. Nobody else has the authority to do so.
I highly doubt it. First, NM has never done naked self-dealing like that in all its history. Ms. Frangou understands that if you do that stuff you don't get treated well by investors ever again. Second, I very much dount NM wishes to sell its shares at these prices. That said, if you worry about this sort of thing, email the company and ask them.
Frustrating to be sure. However, 12 months ago we were in what audiophul refers to as a "stupid shipping rally" (retail piling in for no good reason) without fundamentals to underpin the spike. I knew that at the time and had large sell orders in for $5. Unfortunately for me NNA topped out at $4.9X. Today we are in a very different environment. I expect that over the course of this year we will see NNA able to lock in 3 to 5 year charters at attractive rates, ideally with profit sharing attached.
I mostly own NNA with a bit of STNG and TNP on the side. My preference is NNA because I understand management's strategy and agree with how they manager the company. STNG is in the right place at the right time, but I think the jury is still out on how they will manage turbulence once the fleet is delivered and the balance sheet is levered up. TNP seems attractive enough, but I guess I default to going with what (and who) I know. I think that all of the public tanker companies should be watching longer term time charter rates with an eye toward locking in a good chunk of their fleet as we hit the good part of the tanker cycle. Excessive concentration on spot/short term charters plus balance sheet leverage is not a good idea over the long term.
Short are we? I think you are a good bit early on your short. It will be fun watching your ilk rush to cover later this year.
Meh. This is what Ms. Frangou and the rest of management have been doing for a number of years with Navios group ships. They value the safety of fixed time charters and would probably freely acknowledge that they cannot top tick the charter market. Instead they seem to dollar cost average their charters when they start getting close to historical average ranges, layering profit sharing when they can get it. If this is all a shock, you should be looking at other companies that have more of an aggressive spot bias in their chartering. You will generally not get that with a Navios company.
Creditors consider their own interest via careful lending and taking collateral (mortgage on ships). Employees are free to split and work for whoever they like.
You mean the shipping cycle might happen if the gubmint does not keep us safe? Oh noes!!! The horror!!!
Are you for real, or just a clueless retail short?
If a trade is not done correctly, the trader loses money. Simple as that. In most large organizations doing this stuff, there are usually a whole lot of rules and restrictions on what traders can and cannot do. These rules and restrictions are meant to limit the amount and frequency of stuff going wrong. Yep, there can be rogue traders, but that is a risk with any kind of trading, not just contango trades. In any case, traders would love contango trades: risk-free profit if done properly. What is not to like?
Why would a trader charter a ship and just have it hang around doing nothing? Guaranteed way to lose money, which violates trader priority #1.
Ships are used for lots of things. So long as it is not illegal and everyone gets paid, who cares what the charterer does with a ship? If you want to pay the day rate, I do not care if they park a VLCC off the coast of Atlantic City and fly a huge banner that says "gambling sucks."
Um, I don't even know where to start with this one. How about a simple contango trade explanation:
- Trader buys 2MM barrels of oil at $45 today
- Trader sells 2MM barrels of oil at $50 with delivery in 3 months
- Trader rents a VLCC and fills it with the 2MM barrels he bought
- VLCC casts off and drifts outside shipping lanes near a handy port
- 3 months pass and the VLCC floats into port again to deliver the oil that is already sold at $50/bbl
- Trader collects $5 per barrel less the $3/bbl it cost to rent the VLCC for 3 months (and ancillary costs)
- If there is still material/profitable contango in the oil curve, rinse and repeat
At no point is the trader net long oil. In no way is the trader gambling on freight rates (he booked a 3 month time charter and locked in more than enough profit from the contango trade to pay the bills). And much of this is done overseas, so it isn't clear what regulator would have jurisdiction. Since this is a mostly risk-free trade, it is unclear why any regulator would want to get involved.
Yep. Assuming history is a good guide, I would expect management to gradually add long term charters over time if rates remain at attractive levels.
I think that does not really move the needle for NNA. If they do anything on the dividend it will A) have to be permissible within the bond covenants and B) be based on the entirety of what the business will do over time (years). If NNA can successfully lock up VLCCs and product tankers on multi-year charters at good rates, that is when I would expect to see a move on the dividend. I suspect that we are nearing the point at which management layers in 3 to 5 year charters.
Not as of yet. They will generally answer investor queries, but sometimes it takes a while.
Actually, I think the Navios name has value. They just need to make it easier for investors to differentiate between companies.