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Author: Hohum777 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3183  
Subject: 2 Takes on TNK + more Date: 12/30/2012 10:05 PM
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Recommendations: 2
Two SeekingAlpha blogs on Teekay Tankers (TNK).

1. A Speculative idea, but generally positive
http://seekingalpha.com/article/1076151-teekay-tankers-a-spe...

2. A more cautious take
http://seekingalpha.com/article/1087281-teekay-tankers-ltd-a...


There were some good points in both articles. I agreed with much of the second author had to say
up until he ran the TNK NAV. I think NAV is a tricky calculation in the current tanker market
environment. I made one try last month, then found myself revising my number shortly afterwards.
Two thoughts occurred to me
1. Tanker companies usually value a vessel based on future cash flows, not NAV. A depressed
tanker market means the company would have to adjust its earnings outlook for one, two,
maybe all its vessels
2. The future cash flows would affect the NAV of the vessel. But NAV would not come into play
unless the company was seeking to sell, or to refinance the vessel.
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