TNK

Teekay Tankers Ltd

Industrial/Transportation


Presented:10/21/2019
Price:$15.36
Cap:$0.52B
Current Price:$54.41
Cap:$1.87B

Presented

Date10/21/2019
Price$15.36
Market Cap$0.52B
Ent Value$1.36B
P/E RatioN/A
Book Value$28.00
Div Yield0%
Shares O/S33.63M
Ave Daily Vol278,140
Short Int1.63%

Current

Price$54.41
Market Cap$1.87B
Teekay Tankers Ltd. engages in the provision of crude oil and refined petroleum products through the operation of its oil and product tankers. It operates through the Conventional Tanker and Ship-to-Ship (STS) Transfer segment. The Conventional Tanker segment includes the operations of all the tankers, including those employed on full service lightering contracts. The STS Transfer segment offers lightering support services provided to conventional tanker segment as part of the full service lightering operations. The company was founded in October 2007 and is headquartered in Hamilton, Bermuda.

Please note, this stock split on 11/25/2019 at a ratio of 1/8. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $1.92

Publicly traded companies mentioned herein: COSCO SHIPPING Ports Limited (HK 1199), Teekay Tankers Ltd. (TNK)

Highlights

The presenter is long the overall crude tanker sector, and particularly likes Teekay Tankers (TNK) because of their franchise and reverse lightering capability in the US Gulf Coast. He believes that IMO2020 will create significant crude export demand, and a majority of it will come out of the US Gulf. TNK is a relatively smaller crude tanker company (~$530M market cap) compared to peers like DHT Holdings (DHT). The stock has surged ~60% and is trading at ~$2 now (0.56x book value). The presenter believes that the company could deliver 80% - 90% FCF yield over the next couple of years and expects 100% upside in the stock at the current price.

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Idea Discussion

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