LoL. Thanks. I was hoping to do some investing. TK had changed it's dividend policy in the middle of last year to milk TGP and TOO cashflow. Now they are issuing stock.
DRYS is a dry bulk carrier with no exposure to wet freight. They may benefit from a drop in bunker prices, but they will not experience the same demand for services or appreciation of assets that wet tankers will. The only Teekay asset I like is TNK: Teekay Tankers. TNK owns product tankers, Aframaxes, Suezmaxes, and 50% of one VLCC. They own 28 wet vessels and control an additional 7. They also own a stake in Oslo-listed Tanker Investments, Ltd. (TIL), which itself owns 14 wet vessels (8 Afra, 4 Suez, and 2 VLCC). I would avoid the parent TK and offshoots TOO and TGP for several years. They will be listless if anything.
Great thread, OG are you worried with FRO debt specifically how they seem to use equity for debt swaps?
I actually do not mind the debt/equity swaps as I view them as bullish. I also expect FRO to handle their April 2015 bond repayment with relative ease given the Q4/Q1 results and the impending demand from contango and cheaper oil prices. John Fredrikson has managed to survive and thrive in a very cyclical industry for the past several decades. I trust his management and appreciate his personal ties to his portfolio of companies.
Middle East Crude-Chinaoil sells eighth Upper Zakum cargo to Shell The G/H Dubai spread settled at 1.90/bbl, well over the costs of floating storage in the AG (~1.15/bbl) European Urals market continues slide as CIF Augusta market hits 6-month low 500,000 MT = 3.615m bbls. The Urals program should weigh on Brent while the product exports will depress ARA and Med crack spreads adding further pressure to the entire complex. These are certainly interesting times.