Teekay Corp. - Buy On Excessive Discount To NAV Despite Vastly Improved Outlook

Summary

• Updating investors on a number of recent, positive developments.
• Value of the company's stake in Teekay Tankers has more than doubled in recent months as Russia's assault on Ukraine has reshaped tanker markets.
• Teekay managed to sell its last remaining FPSO unit in July with sales proceeds expected to largely cover its exit from the FPSO segment later this year.
• The company recently announced a $30 million share repurchase program which I would expect to be utilized sooner rather than later given the shares' large discount to net asset value.
• Speculative investors with the ability to keep a close eye on tanker markets should consider using temporary setbacks to scale into the shares.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.