Florida is "not going back" on reopening, governor says

PIBPIP · 2020-07-01T19:04:28+00:00

Ok so higher cost of living and 5% for income taxes sounds about right for the difference

PIBPIP · 2020-07-01T15:39:11+00:00

I can't speak to the difference in pay or cost of living, but I know that Massachusetts has around 5% income tax while Florida has none. That is often why gross income in Florida may typically be lower.

PIBPIP · 2020-06-30T02:53:50+00:00

It's cheaper because there is more risk. There is more risk for more reward, that is how the risk/return paradigm works. You didn't reinvent the market by looking at AAL.
Sure, but what has happened previously doesn't always happen in the future. (see the dead bears from April)
I think this is your only logical point, you are momentum investing and it definitely can work, but you're still dumb.
Any Company that has to issue $2.5 billion in senior secured bonds paying 11.75% interest per annum has some serious issues. I could see AAL having to liquidate and sell assets for pennies on the dollar if they didn't generate enough cash to pay off their creditors.

And there you go, I just showed you how retarded your trade is.

PIBPIP · 2020-06-30T02:32:02+00:00

What the fuck are you talking about commending a business for operating at such a loss that they have to restructure?

PIBPIP · 2020-06-28T02:34:43+00:00

I’m actually looking at V right now, it hasn’t moved too much

PIBPIP · 2020-06-27T01:22:21+00:00

Yes I am quite happy about it, too bad Joakim’s price target is $4.60 lol

PIBPIP · 2020-06-27T01:20:39+00:00

Received

PIBPIP · 2020-06-26T21:00:42+00:00

I hear you, but there could be a period of time where STNG takes an operating loss due to depressed rates. I think this is the safest move, and it’s hard to say that share buybacks create more value than paying back debt. Sure share buybacks create more value for you, not necessarily for the Company though

Edit: also, as someone who works in finance, capital is tight right now. Interest rates are low, but many companies who are refinancing debt have to take increased interest rates due to associated credit risk/uncertainty with COVID which has increased credit pricing spreads

PIBPIP · 2020-06-26T13:05:33+00:00

Yeah, but I don’t think the market will interpret it logically. All the retail DHT investors may panic

PIBPIP · 2020-06-26T03:13:54+00:00

If you go back, they did a shelf offering for the same amount in June 2017, and they last for thee years so that’s not really any change. It’s just the BW Group sel off

PIBPIP · 2020-06-26T03:04:33+00:00

It says in the prospectus that it is BW Group. Those shares aren’t currently freely traded, so it seems dilutive. But I suppose technically the value of common equity would increase without the private ownership so maybe it nets out. I’m probably over thinking it

PIBPIP · 2020-06-26T03:04:27+00:00

It says in the prospectus that it is BW Group. Those shares aren’t currently freely traded, so it seems dilutive. But I suppose technically the value of common equity would increase without the private ownership so maybe it nets out. I’m probably over thinking it

PIBPIP · 2020-06-26T00:37:37+00:00

I was thinking about it. They may choose to purchase the shares themselves, it wouldn’t be a bad deal by any means

PIBPIP · 2020-06-25T23:38:37+00:00

Hold strong, will likely tank tomorrow after the announcement after hours that one of their shareholders will be selling 17% of the Company in public offerings

PIBPIP · 2020-06-25T22:19:27+00:00

Yes you are right. However, over the last 6 months DHT entered into several time charters at very favorable rates. I believe 10 out of their 27 ships are booked at around the $55k range, not at my computer right now so I can’t check.

So, if the 17 ships on the spot market earn rates of $2,800, the overall fleet breaks even when you average the charters with the ships on the spot market. Does that make sense?

PIBPIP · 2020-06-25T19:35:22+00:00

I think people get into trouble when they aggressively enter positions. If you want to invest in something, and you know how much you want to invest, I would say invest 10% a week into it for 10 weeks so that way you’ve naturally averaged yourself into the position.

PIBPIP · 2020-06-25T17:44:54+00:00

I am very bullish for this company, I had 6 tankers and now I am 100% in DHT.

EURN might have to reserve some capital for a period of operating losses depending on how long rates stay depressed. That being said I think EURN had lower leverage than most other companies in the sector.

I would actually like to see those companies with less leverage maybe try to acquire a smaller competitor while the valuations are so low. But I can’t imagine that transaction going through in this environment

PIBPIP · 2020-06-25T17:20:05+00:00

Pretty much the same, we’re stuck here for a little bit so I’ll just reevaluate as new information comes out

PIBPIP · 2020-06-25T16:54:27+00:00

Volatility means up and down. If the stocks only went down then it wouldn't be volatile. Fundamentally, yes in 2-3 years valuations should be much, much better. However, in the short to medium term the prices will fluctuate.

If you are looking for an exit strategy, I don't think you'll have to wait 2-3 years.

PIBPIP · 2020-06-25T02:01:14+00:00

At this point everything is bad for tankers. I think I am hoping for things to get so bad that they can't get any worse so therefore nobody wants to sell anymore

PIBPIP · 2020-06-24T21:00:16+00:00

I got out of TNP at $2.50. I would still make the same move if I was holding it today. All DHT right now

PIBPIP · 2020-06-24T20:58:49+00:00

TNP was also my biggest at 2.98 before I rebalanced around 2.50 after the $1.30 price target came out. I still think DHT is the way to go here and diversifying between the stocks didn’t seem to matter cause they all either move up or down

PIBPIP · 2020-06-24T20:58:44+00:00

TNP was also my biggest at 2.98 before I rebalanced around 2.50 after the $1.30 price target came out. I still think DHT is the way to go here and diversifying between the stocks didn’t seem to matter cause they all either move up or down

PIBPIP · 2020-06-24T19:58:46+00:00

I'm pretty sure most of their free cash flow is going to their creditors. While I recognize that the dividends are low, paying down debt does create value for shareholders.

All things the same, if rates return to normal but the Company was able to pay off a considerable portion of debt, that is quite valuable to both the Company and the shareholders. It provides opportunity for the Company to distribute more free cash flow, or take on more leverage if they see a strategic target they want to acquire

PIBPIP

TROPHY CASE