Going back 10m or so my idea was that I wanted to own #2020Bulkers for the post covid world wide stimulus benefitting iron ore & steel, my guess was that Q2 2021 was the time for cape rates to strengthen. The stock has already doubled incl divs as it traded so much below NAV then
My other even larger holding was $OET with the thought rates would strengthen in Q4 2021 on a revival of flying. I also expected the ECO advantage to increase with higher oilprice and the fuel spread to widen with less plane fuel blendstock available. After large divs my $OET
cost is below 50nok so at least a 50% gain.
Its been a generally good shipping market in Q1 2021, for me almost 60% on the portfolio. But I think it is also fair to make the point again that markets are forward looking.
Its been a generally good shipping market in Q1 2021, for me almost 60% on the portfolio. But I think it is also fair to make the point again that markets are forward looking.
So if you listen to people that say dry bulk stocks shouldnt have gone up in February because rates are low or that tanker stocks should not be a tear coming months because rates are quite low, then you probably need to think again. $OET is below 70% of NAV now. In my opinion:
It is extremely likely that not only will $OET do the journey #2020Bulkers have done and within 2021 trade at 100% of NAV, that NAV is also likely to be materially higher as valuations of ECO tankers are corrected by VV & Clarkson & OET has 66% leverage on those corrections.
You remember the expression "The Easy Money is already made"?
In my opinion we are now at the time when that should be: "The easy money towards 100% of NAV valuation, is about to be made". $OET
In my opinion we are now at the time when that should be: "The easy money towards 100% of NAV valuation, is about to be made". $OET
All this is of course because Markets are forward looking. You need to be too.
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