Posts Tagged ‘Cnbc’
Following up on Nordic American Tankers (NAT) one year later
Wednesday, March 10th, 2010
One year ago, yesterday, I shared the transcript of the CNBC interview with Herbjorn Hannson, CEO of Nordic American Tankers, an oil shipping company whose business fundamentals were profoundly good, particularly given the backdrop the market bottom, when things appeared most dire. This is but one company, and it captured my attention 12 months ago.
| Nordic American T - NAT | 30.31 |
On March 9, 2009, Nordic Shares closed around $23.43. Subsequently they closed at a high of 36.22, two months later on May 7, 2009. Currently, the shares are trading around 31.
NAT has no debt.
Here is the company’s dividend record:
NAT has made the following dividend payments to its shareholders:
Amount per share (USD)
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2010 0.25 2009 0.87 0.88 0.50 0.10 2008 0.50 1.18 1.60 1.61 2007 1.00 1.24 1.17 0.40 2006 1.88 1.58 1.07 1.32 2005 1.62 1.15 0.84 0.60 2004 1.15 1.70 0.88 1.11 2003 0.63 1.27 0.78 0.37 2002 0.36 0.34 0.33 0.32 2001 1.41 1.19 0.72 0.55 2000 0.34 0.45 0.67 1.10 1999 0.32 0.35 0.35 0.36 1998 0.40 0.41 0.32 0.30 1997 0.30 The table illustrates the dividend declared by quarter in which the dividend was paid and is based on the earnings of the previous quarter.
Here is Hannson’s March 8, 2010 letter to shareholders.
Dear Shareholder,
As Chairman and CEO I strive to keep all our shareholders well informed about key aspects of the development of our Company. It is therefore now time for me to send you another letter.
Since my letter of September 29, 2009 to you, the Company has acquired two more suezmax vessels, of which one was delivered to us on November 17, 2009 and the other was delivered to us on March 2, 2010. We paid $51.5 million for each of these 2002 built suezmax tankers. Including the two newbuildings expected to be delivered to us later this year, the fleet of our Company consists of 18 suezmax vessels. The acquisitions are accretive and the dividend potential of the Company has increased.
Accretive growth is a key element in our strategy. Over time the fleet must grow faster than the share count in order to create value for shareholders. In January 2010 we priced a follow-on offering from which the proceeds to the Company were $137 million before cash offering costs. The Company currently has the resources to acquire 4 more vessels without tapping the equity market. An increase of the fleet from 18 to 22 vessels would represent a 22% increase of our fleet whereas the share count was increased by about 10% in connection with the follow-on offering. This is an example of accretion while recognizing that net debt is expected to be slightly higher after such prospective acquisitions.
Having a fleet consisting solely of suezmax vessels, we experience cost benefits and in today’s environment we also pursue possibilities of further reductions in our costs. The Company also has low general and administrative costs which together with our low debt contribute to a very low cash breakeven.
So far into the first quarter of 2010, at the time of this writing, we observe a spot suezmax tanker market which on average is well above the level of the fourth quarter of 2009. Based on the market so far in 2010 we therefore expect the dividend of the Company for the first quarter of 2010 to be substantially higher than the dividend for the fourth quarter of 2009, which was $0.25 per share.
Our primary objective is to maximize total return to our shareholders, including maximizing our quarterly cash dividend. Over time we have in the past produced a very competitive total return for our shareholders and we believe that we are in an excellent position to achieve such results also going forward.
With our proven model and strong balance sheet we aim to be in a position to reap the benefits in the markets as they develop, be they soft or strong from time to time.
I would like to finalize my letter to you by stressing a key dimension in our model: the alignment of interests between our shareholders and our management. If our shareholders do well, so do management and vice versa. We do not believe in special, supermajority shares, for our management. In our Company, all shares have one vote, plain and simple.
As you understand, I am optimistic about the future of our Company.
All the best!
Sincerely,
Herbjørn Hansson
Chairman & CEO
This is by no means a recommendation, I’m not promoting it, nor is not intended to be. What I believe is that this company and others like it are very attractive in a world where credit is difficult to come by.
Disclosure: No positions
Tags: 12 Months, 4th Quarter, 5 Million, Acquisitions, Backdrop, Business Fundamentals, Ceo, Cnbc, Cnbc Interview, Dividend Payments, Dividend Record, Earnings, Element, Fleet, Letter To Shareholders, Market Bottom, Newbuildings, Nordic American Tankers, September 29, Share Count, Shareholder, Shipping Company, Suezmax Vessels
Posted in Commodities, Markets, Oil and Gas | No Comments »
Roach: US jobless rate actually stands at 11.5%
Tuesday, March 9th, 2010
The true unemployment rate in the United States is actually higher than we think - at 11.5%, said Stephen Roach, Asia chairman of Morgan Stanley.
“The (official) unemployment rate at 9.7% is distorted downwards by at least 3 million people who have simply given up looking for work and who have effectively taken themselves out of the work force for economic reasons,” Roach said on CNBC.
“For some bizarre reason, the US statisticians do not count these poor souls as unemployed. If you add them back in, the unemployment rate isn’t 9.7%. It’s 11.5%,” he said.
Source: CNBC, March 8, 2010.
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Tags: Advertisement, Asia, Bizarre Reason, Cnbc, Economic Reasons, Jobless Rate, Morgan Stanley, Statisticians, Stephen Roach, Unemployment Rate In The United States
Posted in Markets | No Comments »
Chris Wood: The U.S. Will be the Endgame
Monday, March 8th, 2010
In this video interview, Chris Wood, CLSA’s Asia strategist and author of the top “Greed & Fear” newsletter, shares his views on global markets with CNBC.
Click here or the image of the report to read Wood’s full report that precedes his appearance on CNBC below.
Wood said: “My view is that there is an inevitable endgame as a result of all this massive spending of taxpayer money in the West and Japan to bail out bankrupt banking systems, so in my view unfortunately the end game will be systemic government debt crisis in the western world.
“It will probably happen in Europe and will climax in the US, and I am expecting on a five year view the collapse of the US Dollar paper standard … The key reason why that is the endgame is that this credit crisis we saw in the west in 2008 and 2009 has simply been deferred, because 95% of the so-called government policy solutions to deal with this crisis have simply been to extend government guarantees.
“So the problem has been transferred from the private sector to the public sector. It is just a matter of time before investors revolt against these sovereign guarantees … The crisis is going to happen first in Europe. The US will be the endgame.” (Hat tip for transcript: Zero Hedge.)
Source: CNBC, March 1, 2010.
Tags: Banking Systems, Clsa, Cnbc, Collapse, Credit Crisis, Debt Crisis, Emerging Markets, End Game, Endgame, Global Markets, Government Debt, Government Guarantees, Government Policy, Greed, Hat Tip, Matter Of Time, Policy Solutions, Revolt, Strategist, Taxpayer Money, Video Interview
Posted in Markets | No Comments »
Buffett buffet
Tuesday, March 2nd, 2010
In the video clips below, legendary investor Warren Buffett, chairman and CEO of Berkshire Hathaway, talks to CNBC about a variety of topical issues.
On the economy and politics
Source: CNBC, March 1, 2010.
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On currencies and market lessons
Source: CNBC, March 1, 2010.
On deal making and financial regulation
Source: CNBC, March 1, 2010.
On Obama and politics
Source: CNBC, March 1, 2010.
Buffett on health care reform
Source: CNBC, March 1, 2010.
Buffett on succession planning and investment strategy
Source: CNBC, March 1, 2010.
Buffett on banks and earthquake insurance
Source: CNBC, March 1, 2010.
Tags: Advertisement, Banks, Berkshire Hathaway, Ceo, Cnbc, Currencies, Earthquake Insurance, Economy, Health Care Reform, Insurance, Insurance Source, Investment Strategy, Investor, March 1, Market Lessons, Obama, Politics, Succession Planning, Topical Issues, Video Clips, Warren Buffett
Posted in Markets | No Comments »
Robin Griffiths: Stocks Likely to Double Dip After May
Tuesday, February 23rd, 2010
Stocks could continue to push higher until May, but after that there is a serious risk of a double dip, Robin Griffiths, star technical strategist from Cazenove Capital, told CNBC.
Source: CNBC, February 22, 2010.
Tags: Cnbc, February 22, risk, Robin Griffiths, Stocks, Technical Strategist
Posted in Markets | No Comments »
Rosenberg’s Take On The Discount Rate Hike (CNBC)
Thursday, February 18th, 2010
David Rosenberg, and several other economists, as well as Steve Liesman, share their first perspectives on the sudden (yet oh so “telegraphed”) discount rate hike.
Source: ZeroHedge.com
Tags: Cnbc, David Rosenberg, Economists, Perspectives, Rate Hike, Steve Liesman
Posted in Markets | No Comments »
Niall Ferguson: Others will Follow Greek Debt Tragedy
Friday, January 29th, 2010
The world debt overhang is threatening the world recovery, because markets will realize at some point how risky it is and the yields on bonds will increase, Niall Ferguson, professor of history at Harvard University, told CNBC on Thursday.
“I think we have a situation where Greece is leading the pack but other countries will follow,” Ferguson told “Squawk Box Europe.”
Very few countries were able to cope with debt of over 100% of GDP in the past, and “the classic question is whether or not you default or try to inflate it away,” Ferguson said.
The United States is in control of its currency and can print more to reduce its debt, but Greece and other countries in the euro cannot do this, therefore the cost of their debt will rise, he predicted.
Source: CNBC, January 28, 2010.
Tags: Bonds, Classic Question, Cnbc, Countries In The Euro, Currency, Debt Overhang, Europe, GDP, Greece, Greek Tragedy, Harvard University, Niall Ferguson, Reduce Debt, Squawk Box, United States, World Debt
Posted in Markets | No Comments »
Rogoff: Economy to crash if it keeps debt appetite
Friday, January 29th, 2010
The world economy is likely to crash and burn if it keeps gorging on debt, Kenneth Rogoff, professor of economics at Harvard University, told CNBC in Davos on Thursday.
Source: CNBC, January 28, 2010.
Tags: Appetite, Cnbc, Crash And Burn, Crash Burn, Davos, Economics, Harvard University, Kenneth Rogoff, World Economy
Posted in Markets | No Comments »
El-Erian: Markets Not Facing Reality of Slow Economy
Saturday, January 16th, 2010
Financial markets have failed to price in the remaining problems that bedevil a long-term economic recovery, Pimco’s Mohamed El-Erian told CNBC.
“You come to the conclusion that the market simply hasn’t priced in the reality of what we talk about every single day,” said El-Erian, who helps run the world’s largest bond fund.
“What you’re getting is a recovery phase, a healing phase that was artificially created,” he said. “The history of crises is very clear. They expose structural problems and when you look at the structural problems you need a structural response, and so far we’ve only had a cyclical response.”
A lasting recovery will only be built on real growth and not that which is stimulated by government, he said.
Source: CNBC, January 15, 2010.
Tags: Bond Fund, Cnbc, Conclusion, Crises, Economic Recovery, Facing Reality, Financial Markets, Mohamed El Erian, Recovery Phase, Single Day, Slow Economy
Posted in Markets | No Comments »
In Defense of the Taylor Rule
Thursday, January 14th, 2010
Fighting back against Fed chief Ben Bernanke’s recent statements, John Taylor, Stanford economics professor and the creator of the Taylor Rule, states his case.
Source: CNBC, January 12, 2010.
Tags: Ben Bernanke, Cnbc, Economics Professor, Fed Chief, John Taylor, Stanford Economics, Taylor Rule
Posted in Markets | No Comments »
Robin Griffiths: A technical perspective of stock markets, the dollar and Turkey
Thursday, January 14th, 2010
The dollar has turned a corner against the yen, according to Robin Griffiths, technical strategist of Cazenove Capital. He sees stock markets going “a little higher for a little longer” and Turkey being the “breakout” emerging market this year, as well as London Brent crude continuing to rise.
Source: CNBC, January 11, 2010.
Tags: Breakout, Capital Markets, Capital Stock, Cnbc, Dollar, Emerging Market, Emerging Markets, London Brent Crude, oil, Robin Griffiths, Stock Markets, Technical Perspective, Technical Strategist, Turkey, Yen
Posted in Markets | No Comments »
SocGen’s Investment Strategy For 2010
Wednesday, January 13th, 2010
Société Générale (SocGen), France’s second-biggest bank, has told its clients to be bullish on commodities, stay with stocks and “anything but cash” in 2010. SocGen’s Chief Strategist Alain Bokobza spoke to CNBC on Jan. 11, 2010 about the investment strategy.
Fear of Double Dip to Prevent Bond Crash
Bokobza sees an ongoing momentum for growth in the U.S. with higher employment, as well as the emerging economies. The consensus seems to be we are heading towards a bond market crash in 2010; nevertheless, fear of a double-dip will prevent a bond market crash.
The U.S. Federal Reserve and G4 countries are expected to stay on a near-zero interest rate for much longer than expected, which makes yield curve play attractive.
Yen - The Carry Trade Currency
Bokobza expects the U.S. Federal Reserve and the ECB to announce this summer that the monetary tightening process will start at the end of 2010 or in Q1 of 2011. At the time of the announcement, i.e., this summer, carry trade will begin to switch from Dollar to Yen.
Overall, the Dollar is expected to be fairly flat against the Euro by the end of this year; however, Yen, as the new major carry trade currency, would fall ”massively”.
SocGen’s Main Advice For 2010
With near-zero interest rates, getting out of cash and into other riskier assets such as equities or commodities should be the strategy this year.
- Anything but cash
- Stay in equities
- Expect rising M&A cycles
- No bond market crash
- Yen carry-trade
- Be a commodity bull
Refer to SocGen’s Cross Asset Research Report dated Jan. 4, 2010 from Scribd.com HERE, and below, for full commentary and recommendations.
Video Source: CNBC
Tags: Alain Bokobza, Bond Market, Chief Strategist, Cnbc, Commodities, Commodity, Dollar To Yen, Double Dip, ECB, Emerging Economies, ETF, Federal Reserve, G4 Countries, Investment Strategy, Market Crash, Q1, SocGen, Societe Generale, Video Source, Yen Carry Trade, Yen Dollar, Zero Interest
Posted in Markets | No Comments »
