Ocean Shippers Continue to be Sold

Today the selling continued in most of the Ocean Ship owner segment of the preferred market.  Selling has been happening in these issues for the last month, but today some smaller investors were ‘bailing’ out at most any price.  We are not overly surprised that the smaller investors were bailing–too many smaller investors like to ‘buy high’ and ‘sell low’ in a panic.  We encourage holders to review the reason they bought the shares in hard hit issues and to review their finanicals–if there has been no change there is no reason to sell.  Of course if you are extremely overweight an issue you will have to make decisions on the future.

In particular today today the LNG carriers got taken to the woodshed.  The Gaslog Partners preferreds (GLOP A, B and C) saw selling earlier in the day with some shares down more than a dollar.  By the end of the day the shares had bounced off their lows from early in the day.

Additionally selling continued in the Tsakos Energy Navigation preferreds (TNP).  The company has 5 issues outstanding, but only 3 have been moving sharply lower as 2 of their issues have ‘failure to redeem’ clauses in effect so they have held up better.

There is no news to account for the fall in these issues.

Container ship owner Seaspan saw fairly heavy volume in their preferreds but 4 of 5 issues traded in the green after being quite red earlier in the day.

As we have disclosed before we are an owner of the Gaslog Partners 8.50% fixed-to-floating rate issues (GLOP-C).  Obviously we have a substantial loss in the shares, but we have reviewed all the data–income statements and more importantly the balance sheet and we see no reason to sell for a loss–in fact the current yield hit around 9.8% today and we have set a 10% current yield to be the point where we add a few more shares.

Shares in Golar LNG preferred 8.75% (GMLPP) and Hoegh LNG Partners 8.75% preferred (HMLP-A) have fallen some in recent weeks, but not to the extent of the shares in GLOP, TNP and DNLG.

6 thoughts on “Ocean Shippers Continue to be Sold”

  1. Tim:
    Have you had a chance to catch the article on Gaslog (the parent company) vs. Gazprom written by Paulo Santos on SA last November 27, i.e published shortly after the new shares of Gaslog Partners-C were issued?

  2. Typo

    In looking at just HIGH-LOW movement, SBBC Scorpio Tankers
    looks rather stable. Coupon 8.25% is called on 6/1/19 currently trading at $25.14. 52 week low is $25.14 52 week high is $25.75

    1. Second typo

      In looking at just HIGH-LOW price movement, SBBC Scorpio Tankers
      looks rather stable. Coupon 8.25% is called on 6/1/19 currently trading at $25.14. 52 week low is $24.62 52 week high is $25.75

      1. Looks like SBBC will pay two more coupons of $.515625 before maturity. Paying 14 basis points for that return over six months would seem like a no-brainer unless you have better uses for the money.

    2. I have owned SBBC for a couple of years and it has been very stable for me. Its price fluctuated less than 5% this year, and I think being near maturity was the chief reason why.

      If only all of my high coupon plays had done as well…

  3. In looking at just how-low price movement, SBBC Scorpio Tankers
    looks rather stable. Coupon 8.25% is called on 6/1/19 currently trading at $25.14. 52 week low is $25.14 52 week high is $25.75

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