1) Quick $LPG thread. They report Q2 tomorrow. Results will be solid. I expect some low forward guidance for Q3 rates, but that doesn’t matter as VLGC is screaming higher again. NAV is in the low $20’s and financial leverage is low. They’ve been agressive on buybacks in Q1.
2) They bought back 6% of shares outstanding in 1 quarter. I expect they hoovered stock in Q2 at 1/3 of NAV. At current VLGC rates, they earn north of a buck a quarter and possibly higher if the sharecount shrank. The fundies are super solid due to Asian demand and US exports.
3) Anyway, $LPG is a damn large position for me and I added more before earnings.
Just adding a note that they missed by a decent chunk and no buybacks. That said, at 1/3 of NAV, who cares and stock is up on the day. That’s how this is supposed to work. Low risk and get paid when wrong. I’m holding. Besides, VLGC rates are solid.
