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October 13, 2019

Shipping Is All About Upside Leverage…


Nine months ago, I began writing quite regularly about shipping (first article, second article, third article, fourth article). The thesis was simple; there was a dearth of new orders, IMO2020 would likely lead to further supply disruption and shipping is a leveraged play on geopolitical volatility (it was pretty obvious that Trump was going to keep causing chaos), hence you wanted to be long ... Read More
Categories: Investments
Positions Mentioned: STNG
March 28, 2019

Won’t They Add More Boats…?


Reader: …But Kuppy, won’t they build more boats and crush rates? Me: With what money?   Shipping is a highly cyclical industry. A boat lasts for two decades but earns most of its money over a handful of quarters—where it often earns truly extraordinary profits. Unfortunately, these earnings incentivize over-ordering and a subsequent glut of vessels for years into the future; destroying charter rates ... Read More
Categories: Investments
Positions Mentioned: STNG
February 12, 2019

Great Bargains In Shipping…


I’m a value investor at heart, so I naturally gravitate towards cheap stocks. That said; companies are often cheap because of well understood problems. The money is made by having a divergent opinion for why things will get better, along with a catalyst—otherwise a cheap stock will stay cheap or even get cheaper. In terms of valuation, there is no question that most US ... Read More
Categories: Investments
Positions Mentioned: STNG
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