Amidst The Geopolitical Conflict, Shipping Stocks Could Continue Moving Higher
It’s important to recall that most shipping markets, with the exception of oil tankers, were already very tight prior to the recent invasion of Ukraine. This invasion and the ripple effects:
Food and energy products must eventually move, so we will likely see re-routing into less efficient trade channels across the world. This will lead to higher total ton-miles (i.e. total cargo moved x distance between trading partners), which is the correct way to measure shipping demand.
Higher oil prices drive up the cost of the bunker fuel utilized by ships, which will incentivize “slow steaming” to consume less fuel, providing an additional synthetic supply reduction.
Shipping doesn’t do well in a global recession, but it can be an amazing place to be in a mature cycle. Lots of 10-bagger returns in shipping from 2005-2008 and valuations today are even lower than valuation in 2005.
$Pyxis Tankers(PXS.US$
$ $Top Ships(TOPS.US$
Food and energy products must eventually move, so we will likely see re-routing into less efficient trade channels across the world. This will lead to higher total ton-miles (i.e. total cargo moved x distance between trading partners), which is the correct way to measure shipping demand.
Higher oil prices drive up the cost of the bunker fuel utilized by ships, which will incentivize “slow steaming” to consume less fuel, providing an additional synthetic supply reduction.
Shipping doesn’t do well in a global recession, but it can be an amazing place to be in a mature cycle. Lots of 10-bagger returns in shipping from 2005-2008 and valuations today are even lower than valuation in 2005.
$Pyxis Tankers(PXS.US$
$ $Top Ships(TOPS.US$
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karnithya : Thanks Master. Are these going to swing like the oil and energy stocks or are they more like a long term hold candidate? @Mcsnacks H Tupack
Mcsnacks H Tupack OP karnithya : They are going to swing a little then slow and turn into long term stocks that will reach around 10-15.00. Short term they should reach 2-3.00 pretty fast before slowing down
Fengshui MasterWindz : Why keep dropping
Freedom29125 Fengshui MasterWindz : think long term
Mcsnacks H Tupack OP Fengshui MasterWindz : Volume has slowed so MMs will bid them down to the price before they ran that shorts will cover. So it will fall to .62 before it recovers and goes back up.
Mcsnacks H Tupack OP Freedom29125 : It will bounce at .62.
SpyderCall : good info
Fengshui MasterWindz Mcsnacks H Tupack OP : Boss. You good.
starr67 : Sir any update on Pyxis Tankers PXS?
pennypincher : HOLY SHIT!!
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