Tsakos Energy Navigation: Buy This Overlooked Gem In The Tanker Sector

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About: Tsakos Energy Navigation Limited (TNP), Includes: DHT, EURN, FRO, STNG, TNK
by: Nick First
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Nick First
Long/short equity, Deep Value, value, contrarian
Summary

Many tanker names have doubled off of the bottom in 2019 while TNP has lagged and remains near its lows at a fraction of net asset value.

Conservative chartering strategy while rates were lower limits upside profitability for 2019 and has held the share price down.

Many of TNPs ships that are on low period contract rates are set to roll off contracts in the next 12 months, allowing them to re-charter at much higher rates.

High cash flows and low future capex will allow management to close the valuation gap with share buybacks and/or increased dividends.

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