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March 19, 2020

Crude Contango…


Over the past week, I have taken my bullishness on tankers from level 10 to 11. It started with the Saudis busting out of the cartel formerly known as OPEC+ in order to dump oil and crush US shale, but it has progressed far beyond that as various US cities went into lock-down. Fair warning, I’m going to generalize, I’m going to round some ... Read More
Categories: Investments
Positions Mentioned: DHT, EURN, LPG, STNG, TNK
March 13, 2020

What Crash?? Buy Tankers…


Long-time readers of this site know that I have a sweet spot for tankers. This is because I know from experience just how volatile they can be to the upside. Meanwhile, with a few exceptions, they trade at the largest discounts to NAV that I can remember, giving you an incredible margin of safety—especially with repaired balance sheets and charter rates spiking to all-time ... Read More
Categories: Investments
Positions Mentioned: DHT, EURN, LPG, STNG, TNK
February 2, 2020

Tankers Are Tanking….


Yeah, I know. The past few weeks have been miserable for tanker longs. As a good friend keeps reminding me, “Tankers take the escalator up and the elevator down.” He should know, as he’s been investing in shipping since long before I was born. At moments like this, I like to analyze what has changed and see if the thesis has been altered. Let’s ... Read More
Categories: Investments
Positions Mentioned: DHT, EURN, STNG, TNK
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
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