No. of Recommendations: 1
About seven weeks, I shared my thoughts on TNK here--

At the time of the post, first week of October 2012, TNK traded at around $3.85-ish, and I suggested
in the last paragraph, the stock could continue spiraling lower. It did, down another 35+%. I don't
agree with Yahoo! Finance's number for TNK's book value. There isn't really an easy way to get a
value, but I thought I would take a shot. Here is what TNK own:
1998-build Aframax - 1
1999-build Aframax - 3
2003-build Aframax - 1
2004-build Aframax - 5
2005-build Aframax - 2
2002-build Suezmax - 2
2003-build Suezmax - 3
2004-build Suezmax - 2
2008-build Suezmax - 2
2009-build Suezmax - 1
2006-build LR2 - 1
2007-build LR2 - 2
2000-build MR2 - 1
2004-build MR2 - 1
2005-build MR2 - 1
50% JV newbuild VLCC to be delivered in 2013

Aframax- Avg $35M, Suezmsx- Avg $45M, 2000-build MR $20M, LRs $30M, MRs $27M.

Fleet $1034M, other assets $200M, Debt $800M, Total shares 84M.
($1034M + $200M - $800M)/84M = $5.17/sh

If one uses the avg vessel numbers for the 13-vessel acquisition, it works out to $449M
(vs $455M actual). A 2010 three tanker acquisition (2 Suezmax, 1 Aframax) at $170M probably
has significant writedowns. Those are my sanity checks. As far as vessel age, TNK has a vessel
age fairly middle-of-the-road, i.e. not too shiny, not too old.
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