PhotoSynth commented on a stock · Oct 15, 2024 06:28

Excellent opportunity! Updated 11/5/2024

I started trading this stock 2 years ago. And its a killer. They DO pay their dividends more often than not ( which are extraordinary ( currently 24%)) and the capital appreciation of the stock has been reasonably consistent 📈. Additionally TORM has had somewhat predictable “rise and fall” cycles with surprising timing consistency in between those cycles.

A few months ago, the majority stake holder sold a sizable chunk of shares,… but only about 3% of their position (about 1.2% of total outstanding shares, which they also did last year, while most other major players have continued make me believe that it got picked off as a stock to be able to write down any losses in “October” which is a time that a number of institutions and Hedge funds begin to sell stock to achieve this for tax purposes. This same shareholder did the same thing last year, after which the market went through a similar correctional and consolidation phase, before rsuming its steady rise to new all time highs this summer.

Excellent opportunity! Updated 11/5/2024

October, being a typical bottom for markets going into year end sets the stock up for a nice potential bull market going forward into 2025 as it rests on major support at the $24.50 - $25.00 range, a favorable range to be in front of the elections.

As TORM is a leading global operator of specialty petroleum distillates tankers (such as LNG and other distillates,) that operates what is a currently growing fleet of these specialty vessels for trans-global market.

At less than $25/ share, in my experience, this stock is a steal, and at the current price, it has a whopping 24% dividend. Though business has been softer moving into the third quarter, TORM has also recently taken delivery of its 6th new vessel in a series of previously well planned out aquistion for “multiple new vessels” for which it did an acceptable capital raise in order to pay for the vessel.

Its important to remember that when TORM takes delivery of a vessel, the assett itself becomes almost immediately ecretable to the companies revenue stream and growth. Additionally, there have been no more noteble insider sells this year…..at all. Good stuff!

I just bought some more at $24.91, as it sits on major support and has this tremendous upside potential.

Additionally, the stock sells at a significant ( 35%) discount to its fair value of $38.80👍, ($14.00 below its current price!) . Most of the Oscillators have begun a turn up. And the 1 day candle chart’s MACD is so outrageously oversold, as to almost be ridiculous. from a technical perspecfive, I LOVE this. Hard not to see it as a coiled spring.

….. and as per usual, sell side analysts brought down their estimates fro $42 - $48 range, to the $35 - 48 range…whichl during a correctional phase, inspired a few analysts to lower their estimates ( in fear of being wrong , and doing so late in the game to boot) , which for me is usually a pretty good time to buy equities…..

3rd quarter earning are due out…… November 7th.

The known softness in the 3rd quarter, as well as other pressures on the stock, appearing to be baked in, could allow for a significant move, even on weaker numbers. But any positive guidance could start the ratcheting up of this stocks price.

So the nice upside, huge dividend,”””” 5 star””””Morningside rating, and the fact that it trades at a huge discount to its fair value, lead me to feel that the price is reasonably well protected from any major selling pressure because of all of the above. As such,….Im a definite buyer here.

This stock could very well explode higher after having absorbed what appear to be most all of its known downsside catalysts, in a market that expects to grow significatly going forward with the underlying market fundamentals of increased energy demand worldwide as well as higher rates and longer routes because of the issues with the Panama canal and the risks associated with heightened tensions in the middle east.

Both of these issues are causing commercial traffic to largely choose the route around the horn of South America in the Panama Canal’s case) and the horn of South Africa to avoid the risk of attack by hostile forces making traveling through the straights of Hormuz, a risk, not worth taking.

Any volatility in international tensions will certainly increase not only the need for their services, but are a catalyst to increases to their$/ tonnage/mile rates as well.

So it appears we may well have what appears to be a very very good opportunity for not only outsized capital growth, but being on the receiving end of what is among the best paying dividend stocks in the entire market. I like the odds….

GO TORM !!!📈👍

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