Preferred Show The Way (UP LNG Shipping Indices Report)
Summary
- UP indices lost 11 pts thanks to GLNG.
- HMLP stabilised, preferred above $27.
- A few words about Dynagas.
Values of UP LNG Shipping Indices for 30th August
| UP Total Return Index | -143.64 |  |
| weekly change | -11.41 | |
| UP Simple Price Index | -405.26 |
|
| weekly change | -11.41 | |
| UP Preferred Simple Price Index | -67.72 |  |
| weekly change | +2.27 | |
| UP Volume Trend Index | 2917.37 |
|
| weekly change | -2192.23 |
(source: author)
UP indices finished 11 points lower, mainly due to Golar LNG (GLNG) earning call. It finished 5 % lower. Other stocks finished between +/- 0.5 %.
Volume was also lower, but still above average. The most traded stock was GLNG, while Höegh LNG Partners (HMLP) stabilized.
(source: author)
As I said this week is important for future of HMLP price, let´s look at it now. It wasn´t bad trading season last week. Price lost only 0.9 % and volume was only average. But price finished below last week and this area was full buyers in past. Now they only stopped the price but weren´t able to push it up. It seem to me like a consensus between buyers and sellers.
HMLP weekly chart (source: author´s Amibroker platform)
Similar situation was on both GasLogs. Look at GLOG chart.
GLOG weekly chart (source: author´s Amibroker platform)
During last three weeks (last 3 candles) there are only buyers tails ("shadows" below the candle).
The most rising stock of last week was Dynagas LNG Partners (DLNG). On Thursday it was trading at $1.37 on average volume, on Friday finished at $1.29. But we are still waiting for Q2 earnings and mainly to refinance news.
If you are asking who is trading this poor stock, here is a CNN chart (data to 6/30/19, but last updated on August).
(source: CNN)
At some discussion at the end of 2018 I was defending long contracts of this company and I still like this, especially when the revenue is slightly rising. Now spot players are trying to fix the contracts at about $84.000/day (sure, much more than DLNG has), but previous charters were at $50-60.000. And we have seen what these spot/prices done.
Back to UP LNG Shipping Indices. Whole market finished higher and UP indices lower, this is completely opposite to last week.
(source: author)
And preferred stocks rose again, but very little.
Dynagases were losing (not positive for my DLNG opinion), but GasLog (GLOG) preferred is above $27. Investors are feeling very safe with this preferred and similar to HMLP´s preferred. Look at daily chart, there is nice buyer´s tail.
HMLP-PA daily chart (source: author´s Amibroker platform)
(source: author)
Analyst's Disclosure: I am/we are long DLNG, GMLP, GLOG.
I also have small positions for study purposes in each of seven stocks included in UP LNG Shipping Indices.
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