DHT Holdings Inc (DHT)

[Technologic]

Inside the ‘mind-blowing,’ ‘crazy,’ ‘insane,’ ‘ridiculous’ tanker sell-off
https://www.freightwaves.com/news/inside-the-mind-blowing-crazy-insane-ridiculous-tanker-sell-off
Exceprts:
On Wednesday (2020/05/06), U.S.-listed tanker owners reported record-high results, executives confirmed strengthening rates on conference calls, the broader stock market was relatively stable (at least until the last hour), the price of crude oil declined … and yet, tanker stocks fell sharply in heavy trading.

It was “the craziest price action I’ve seen in my nine years covering the space,” Jefferies shipping analyst Randy Giveans told FreightWaves.

According to Giveans, “Today’s performance is ridiculous. Both DHT and Scorpio Tankers were up 4-5% when the market opened, and both press releases and calls were very bullish. These earnings-to-equities disconnects are crazy. Had I not looked at the screen, I would have assumed shares would be 10% higher."

“I know many investors who bought in the last six weeks to hold until earnings, so I guess [they are] dumping today — although to get the DHT dividend, you have to be a shareholder on May 19, 2020.”

Giveans continued, “Today’s weakness seems all about falling rates and concerns that rates are heading back to $10,000 per day — which is just silly. Rates have been quoted as ‘plunging’ or ‘diving,’ but of course rates are going down this week, because of Far East holidays, fewer exports out of Saudi Arabia, charterers remaining slow to fix, and contango tightening. Rates are still strong, and we expect rates to improve in the coming weeks.”