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Barry Parker Commentaries

Easter time- the hunt for yield and golden eggs

Apr 6, 2015
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Last week, I made the comment that several participants on the Analyst panel at the Capital Link Shipping and Offshore conference were suggesting that tanker equities had seen a small run up, and now, with all this attention, had less upside to offer than other sectors- say, drybulk. The larger context was that yes, the shares had made a positive move, but the magnitude of the move was less than proportional to the gains made in the actual market, where vessel hires stood in excess of $40,000/day (for widely watched VLCCs, representing a double in top line revenue, since 2014 Q3). I still disagree with the premise of buying drybulk simply because things can only get better, but maybe tankers do continue to get way too much attention, as evidenced by a flurry of shipping articles in what I call mainstream financial media. By the way, drybulk has not been immune from coverage- mainly accentuating the negative; perversely, too much negative attention may also be a contra-indicator. So maybe these analysts are on to something!

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