SEA

Our Reports on Stocks in the Shipping Industry

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Image Source: Airviews Photography Structure of the Shipping Industry The shipping industry is cyclical with extreme volatility in charter hire rates and profitability. The degree of charter hire rate volatility among different types of dry bulk vessels also varies wildly. The Baltic Dry Index (BDI), the daily average of charter rates in selected shipping routes, is viewed as the benchmark to monitor the movements of the charter market and performance of the entire dry bulk shipping market. Cargo shipments and trade financing for the purchase of commodities carried by sea are key drivers of demand. We don’t like the industry at all given its largely unpredictable pricing dynamics. We no longer publish reports on stocks in the Shipping industry. << … Read more

MLPs: Circular Flow of Unsubstantiated Support Evaporating

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Pictured: The circular flow of unsubstantiated support that continues to unravel, previously supporting the prices of the MLP universe. Image published June 18, 2015. © Valuentum Securities. The image above was taken from Valuentum’s President Brian Nelson’s article published on valuentum.com/ June 18.  Forward-looking, cash-flow based dividend analysis has proven its worth once again. Shipping giant Teekay LNG Partners (TGP) made a tidal wave in its stock recently, knocking income investors over, after it cut its distribution by 80% December 17 in order to fund capital requirements on its future growth projects, reduce debt, and eliminate its need to access equity capital markets in the near term. The Valuentum thesis on MLPs continues to suggest that distributions related to the business model continue to be fueled … Read more