Nordic American Tankers Could Be Value Trap Despite Good P/B Ratio

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Rupert Hargreaves
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Updated on

The oil tanker market has been depressed since 2008. A combination of oversupply within the industry as well as slumping daily spot rates has thrown almost all tanker companies into a loss making position and this pressure on the industry is unlikely to disappear anytime soon. Indeed, according to some sources, it is now cheaper to buy a new tanker rather than a secondhand one, as shipyards are slashing prices in order to attract customers. That said, shipyards are still working off the huge order backlog that was built up pre-2008, and during the first half of 2013, 14.6 million…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk