Overall I think we will see upside for TNP in the short-term. Perhaps a pullback next day or so could occur I suppose but are yall also seeing a further leg higher? I started receiving notifications from awe-some_sto-cks the other week and so far they have presented interesting new trade ideas.
I just had a quick look at TNP's second quarter numbers and according to the press release the company..."generated positive net income of $3.6 million in the second quarter of 2017 or $(0.03) per share....after taking into account $6.5 million in preferred stock dividends." In truth, the company actually lost $.03 a share but is trying to "spin" the numbers to make it look like a profitable quarter. I've often wondered why TNP went out and issued those ridiculously high paying preferreds (+8%) in such a low interest rate environment. According to the company, it has over $250 million in cash, so why borrow money at such high rates? Any information would be much appreciated.
Tuphkat, I read the transcript of the conference call and it was much the same as all the previous ones, talking about their industrial model whereby the 75% longer term contracts cover all expenses and the remaining 25% of the ships can take advantage of spot rates. TNP also said that the 4th quarter (not the upcoming 3rd mind you) will be much better, as will 2018. I don't really see how this will come about for exactly the same reasons you mention, 14 new builds, all contracted out and yet no increase in revenue and certainly no increase in net earnings this quarter. TNP did mention additional dry docking of some ships and maintenance which increased costs and obviously took away from profits but this will continue from year to year as in the past. Like you, I can't figure out how the company went from 16 cents a share to -3 cents within the space of 3 months. Spot markets are supposed to be very bad so that could be part of the problem but the question is when will these conditions change? The company said it was optimistic about the future and hence the 5 cent dividend in November but if that is to be our last dividend this year the company has effectively cut out the final dividend and so how optimistic is that? I will wait this out a bit longer but if nothing changes for the better I'll be selling out to look for better opportunities. Good luck to us all....we're going to need it!
William, You would think/hope that TNP's results would be about the same as last quarter as approximately 75% of their charters are already long term with locked in rates, much like last quarter. However, if the remaining spot market rates are poor or there has been a large number of ships out of commission due to scheduled or unscheduled maintenance, then the results may not be so good. Let's hope we get a pleasant surprise as the stock price has shown some strength recently; good results and a bump up in the stock price would be most welcome.
Any one listen to the conference call? Was there any insightful information? I'm preplexed as to why the earnings this quarter were so poor, what with all the new ships they have on contract. Maybe the contracted rates they negotiated were not very good so this lowered their profit margin.
The results are out and they are dreadful! $.03 a share, a penny under Yahoo!'s estimate. The $0.05 dividend is still there but it will be issued on Nov. 9th, which means it will be unlikely that shareholders will receive a fourth dividend one month later, but maybe we will. If there is no 4th dividend then our dividend will have been effectively cut by 25% but the company probably hopes that no one will notice this. My main concern is that the 15 new ships, that the company has been talking about for the past two years and have now been almost completely been incorporated into the company, have made almost no impact on income or earnings per share. What happens now? Where does the growth come from? Any ideas?
My guess is that TNP is due for a pullback in the short-run. Do you guys find it difficult to know when to buy or sell something? I prefer to get my stocks from awe-some*sto-ck*s.
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Perhaps a short-term pull back is more likely before the next rally on TNP? Do you guys find it difficult to know when to buy or sell something? I prefer to get my stocks from Awe-Som.e.Sto-cks..
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Very difficult to see TNP not making a big run north. Im not sure about you guys but https://hotstocksanalysis1.blogspot.com/ has provided me with some pretty good trade ideas. I messed up executing some of them but thats on me.