Chasing Tanker Stocks Up

One of the few benefits that has come from shipping’s tangle with the high yield bond market is that more institutional investors and analysts have taken the time to understand the sector. Yet one of the complaints we hear from investors fact that there just aren’t enough companies listed on US stock exchanges that have adequate liquidity and market capitalization. This means that relative value analysis goes out the window and investors who wish to play the sector “pig pile” on the few tankers stocks out there. We call it the “Teekay Effect”. Even OMI saw its share price double in the recent scramble to participate in the upturn. But all that may be changing. If the tanker market continues to be strong through the summer, investors might have more stocks to choose going forward. From a marketing perspective, the timing couldn’t be better. Remember when Posidonia rolled around 2 years ago – the high yield bond market had reached an orgy-like state with more investment bankers spotted tramping along the Akti Miaouli trying to sign up issuers than in the entire history of Greek shipowning.

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