Large Tanker Owner Tsakos Energy Navigation Sells a Preferred Issue

Large tanker owner Tsako Energy Navigation has sold a cumulative preferred stock issue. This is a 8.75% offering.

This issue will begin to trade on the OTC grey market under the ticker TNPZF tomorrow (Friday).  Like the Teekay Offshore Partners issue from last week this may be a good ‘flip’ candidate for those looking for a short term gain.  We wrote a note on the Teekay issue here.  Although anyone looking to do a flip should understand what they are doing and that there is no guarantee that a profit will be secured.  We personally have no interest in a perpetual issue at this time and we hold a short term position in Teekay from last week so will let this one pass.

Tsakos had a nice profit last quarter and we believe they will be in good financial shape for the next few quarter at least. But be aware that they have most of their tankers on the spot market so there are no long term contracts locked down for most of the fleet.

Tsakos has 2 other preferred issues outstanding–1 is a 8% issue and the other is a 8.875% issue.  Looking at the current pricing on these issues it appears that the new issue should trade up in the $25.50-$25.75 area 30 days out.

Here are the details of this issue.