sefa ozel/iStock via Getty Images The "No-Free-Lunch" Disclaimer Investing in international shipping is rarely about smooth sailing. When you mix in Russian sanctions and Middle Eastern turmoil, it’s more like trying to sail through a tornado. Right now, Dynagas LNG Partners ( DLNG ) is trading at a valuation that suggests the market expects the ship to hit an iceberg any minute. But as the old sa...
sefa ozel/iStock via Getty Images The "No-Free-Lunch" Disclaimer Investing in international shipping is rarely about smooth sailing. When you mix in Russian sanctions and Middle Eastern turmoil, it’s more like trying to sail through a tornado. Right now, Dynagas LNG Partners ( DLNG ) is trading at a valuation that suggests the market expects the ship to hit an iceberg any minute. But as the old saying goes, price is what you pay, value is what you get. If you can stomach a bit of geopolitical theater, the math here starts to look less like a tragedy and more like a very profitable accounting exercise. The Geopolitical Fog: Real or Mirage? The bear case is easy to spot: DLNG has one-third of its fleet tied to Russian gas. By January 2027, the sanction hammer is expected to fall. On top of that, the Middle East is a powder keg, and new, shiny vessels are hitting the water from Korean yards, making older fleets look like relics. A previous author covered these risks well back in March. Risks: The Russian "Iceberg": New EU rules might ban DLNG from moving Yamal gas anywhere by 2027. Since these contracts are the backbone of the partnership's income, we’re talking about a potential total blackout for a third of the fleet. The Mirage of High Rates: Geopolitical chaos in the Middle East might spike rates today, but it creates a messy, unpredictable market. In the long run, this turmoil usually leads to a vessel oversupply that makes securing stable, long-term charters much harder. Old Tech, New Crowds: We are holding an aging fleet in a market about to be swamped by nearly 100 high-tech new-builds by 2026. Our older ice-class ships risk becoming "relics" that struggle to compete with more efficient newcomers. However, the market has a habit of over-discounting "scary" headlines while ignoring "boring" cash flows. These aren't just any ships; they are high-spec, ice-class vessels. They aren't easily replaced, and in today's uncertain energy climate, they remain in high dema...
Here's how news of a US Navy blockade affected the movement of three ships in the Strait of Hormuz. Blloomberg's David Ingles reports. (Source: Bloomberg)
Here's how news of a US Navy blockade affected the movement of three ships in the Strait of Hormuz. Blloomberg's David Ingles reports. (Source: Bloomberg)
Nvidia shares are still struggling to break out of their monthslong trading range. The chip maker is being held back by geopolitical concerns as well as competition and production worries. Nvidia was down 1.1% at $186.55 in premarket trading Monday.
Nvidia shares are still struggling to break out of their monthslong trading range. The chip maker is being held back by geopolitical concerns as well as competition and production worries. Nvidia was down 1.1% at $186.55 in premarket trading Monday.
China’s credit expansion slowed more than expected in March from a year earlier, as continued weakness in household and business demand weighs on financing activities. Aggregate financing , a broad measure of credit, increased 5.2 trillion yuan ($765 billion) in March, according to Bloomberg calculations based on data released by the People’s Bank of China on Monday. That compares with a median fo...
China’s credit expansion slowed more than expected in March from a year earlier, as continued weakness in household and business demand weighs on financing activities. Aggregate financing , a broad measure of credit, increased 5.2 trillion yuan ($765 billion) in March, according to Bloomberg calculations based on data released by the People’s Bank of China on Monday. That compares with a median forecast of about 5.6 trillion yuan by economists in a Bloomberg survey and an expansion of 5.9 trillion yuan recorded a year ago Financial institutions issued 3 trillion yuan of new loans in the month, versus a median forecast of 3.5 trillion yuan The pullback came after credit expansion picked up sharply at the start of the year, boosted by strong government bond issuance and a seasonal rush by banks to extend loans. While China’s consumer confidence improved in recent months, according to an official gauge , it remains well below the level before 2022, when Covid lockdowns and a burst property bubble hammered sentiment. The housing market is still in distress despite a recent rebound in transactions involving second-hand homes in some megacities. Goldman Sachs Group Inc. economists predict property prices in bigger cities will stabilize in the next year or two, though smaller urban areas will likely continue to endure a slump due to higher inventories and population outflows. Less support came from government bond issuance, which slipped to around 1 trillion yuan from 1.5 trillion yuan last March. Even so, a rise in corporate bond financing may have helped offset part of the drag, Citigroup Inc. economists said in a report prior to the data release. Signs of excess liquidity in the financial system have meanwhile emerged, with money-market rates falling in recent days. That could be a possible consequence of ample cash sloshing around the economy but failing to translate into credit growth, which could act as a constraint on any moves to ease monetary policy. An increasing...
West Texas Intermediate and Brent crude both climbed above $100 a barrel on Monday after a breakdown in talks between the U.S. and Iran over the weekend.
West Texas Intermediate and Brent crude both climbed above $100 a barrel on Monday after a breakdown in talks between the U.S. and Iran over the weekend.
Texas Instruments Incorporated (NASDAQ:TXN) is among the 10 High-Flying AI Stocks to Buy. On April 9, Stifel upgraded Texas Instruments Incorporated (NASDAQ:TXN) to Buy from Hold with a price target of $250, citing the company’s positioning at the start of a new analog upcycle. After a prolonged investment phase that weighed on profitability, the firm believes […]
Texas Instruments Incorporated (NASDAQ:TXN) is among the 10 High-Flying AI Stocks to Buy. On April 9, Stifel upgraded Texas Instruments Incorporated (NASDAQ:TXN) to Buy from Hold with a price target of $250, citing the company’s positioning at the start of a new analog upcycle. After a prolonged investment phase that weighed on profitability, the firm believes […]