Tuesday
Apr252006
Portfolio Trade - Tsakos Energy Navigation
April 25, 2006 at 4:45 PM
Bought 1/4 position in Tsakos Energy Navigation (TNP). (price between: 38.19 -38.31)
I listened the NYSE presentations on shipping today. Listening to company executives give presentations always forces me to do better analysis because I want to call out executives on their claims. I do feel shipping is at a bit of a peak right now but since the valuations are low on the shippers I feel safe with small positions. These shares are thinly traded so I also can pick them up with limit orders below the market when big sellers are in a hurry.
Good things about shippers (I currently own TNP and SSW)
1. pay high dividends - TNP = 5.5%, SSW = 7.5% (and after all my focus is income and inflation protection),
2. have low valuations (that's good because asset protection is important
3. and are nicely correlated with inflation (remember that inflation protection)
4. ship owning companies tend to charter ships for very long periods.
Worries:
1. Peak in ship building will lead to over capacity and low prices
2. Global recession leads to drop in shipping prices
Disclosure:
I own TNP and SSW. I plan to buy more of both over the rest of this year - depending on price.
I listened the NYSE presentations on shipping today. Listening to company executives give presentations always forces me to do better analysis because I want to call out executives on their claims. I do feel shipping is at a bit of a peak right now but since the valuations are low on the shippers I feel safe with small positions. These shares are thinly traded so I also can pick them up with limit orders below the market when big sellers are in a hurry.
Good things about shippers (I currently own TNP and SSW)
1. pay high dividends - TNP = 5.5%, SSW = 7.5% (and after all my focus is income and inflation protection),
2. have low valuations (that's good because asset protection is important
3. and are nicely correlated with inflation (remember that inflation protection)
4. ship owning companies tend to charter ships for very long periods.
Worries:
1. Peak in ship building will lead to over capacity and low prices
2. Global recession leads to drop in shipping prices
Disclosure:
I own TNP and SSW. I plan to buy more of both over the rest of this year - depending on price.
Reader Comments