DHT Position
If you are to look at this chart, it will show you the volume, stochastic, RSI, and commodity.
All indicators point to us continue to trip down as the D line is still above 80 (overbought). We might say low 7's this week. This downturn will bring the D-line into middle territory (50's) until the earnings, which will be posting approximately on May 13th.
Couple of interesting points I wish to pull from the 10k for 2019, that lead me to believe that there are some strong opportunities on the DHT positions:
- In November 2019, the company prepaid the outstanding amounts in respect of DHT Lake and DHT Raven under the Nordea BW VLCC Acquisition Credit Facility (as defined in Item 5), totaling $22.3 million. As a result of such prepayment, the financing facility tranche under the Nordea BW VLCC Acquisition Credit Facility was reduced to $45 million
- Currently, there are 10 tankers on fixed rates through 2022 (various expiries); this has brought DHT in-line for break-even currently around $2,700 USD/day for the remaining 3 quarters fo 2020. The remaining 17 tankers on spot rate include: DHT Mustang, DHT Bronco, DHT Colt, and DHT Stallion (newest tankers; DWT 317,xxx). They haul the largest amounts of crude, outside of some of the time-chartered tankers
- In 2019, DHT repurchased and retired 725,298 shares of our common stock in the open market at an average price of $4.47 per share. In March 2020, the board of directors approved a repurchase through March 2021 of up to $50 million of DHT securities through open market purchases, negotiated transactions or other means in accordance with applicable securities laws. The repurchase program may be suspended or discontinued at any time. All shares of DHT common stock acquired by DHT are expected to be retired and restored to authorized but unissued shares.
The repurchase of $50 million at current spot prices would equate to retiring 6.5mm shares of common stock out of the 146mm outstanding. Definitely points to a shore-up to strengthen the company's position.
All indicators point to us continue to trip down as the D line is still above 80 (overbought). We might say low 7's this week. This downturn will bring the D-line into middle territory (50's) until the earnings, which will be posting approximately on May 13th.
Couple of interesting points I wish to pull from the 10k for 2019, that lead me to believe that there are some strong opportunities on the DHT positions:
- In November 2019, the company prepaid the outstanding amounts in respect of DHT Lake and DHT Raven under the Nordea BW VLCC Acquisition Credit Facility (as defined in Item 5), totaling $22.3 million. As a result of such prepayment, the financing facility tranche under the Nordea BW VLCC Acquisition Credit Facility was reduced to $45 million
- Currently, there are 10 tankers on fixed rates through 2022 (various expiries); this has brought DHT in-line for break-even currently around $2,700 USD/day for the remaining 3 quarters fo 2020. The remaining 17 tankers on spot rate include: DHT Mustang, DHT Bronco, DHT Colt, and DHT Stallion (newest tankers; DWT 317,xxx). They haul the largest amounts of crude, outside of some of the time-chartered tankers
- In 2019, DHT repurchased and retired 725,298 shares of our common stock in the open market at an average price of $4.47 per share. In March 2020, the board of directors approved a repurchase through March 2021 of up to $50 million of DHT securities through open market purchases, negotiated transactions or other means in accordance with applicable securities laws. The repurchase program may be suspended or discontinued at any time. All shares of DHT common stock acquired by DHT are expected to be retired and restored to authorized but unissued shares.
The repurchase of $50 million at current spot prices would equate to retiring 6.5mm shares of common stock out of the 146mm outstanding. Definitely points to a shore-up to strengthen the company's position.
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