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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (3229)	2/6/2001 4:56:43 PM
From: Logain Ablar	Read Replies (1) \| Respond to of 33421

Hi John: I faxed Mike some research reports on NAT a few months back. I think I've tossed them. Actually they are not a spin off of BP but do have a 7 year lease with bp with bp having the option to renew annually for the next 7 years. The company pays out net income in a dividend. Only debt is from a buy back of shares appx. 2 yrs ago. Dividend is in 2 pieces. 1) The basic lease rate (equated to appx 34 cents a share / quarter). 2) BP pays 3 months in arrears the difference between the basic lease rate and the actual daily market rate (as determined by somebody??, I forget who but its in the annual report. I sold my position a few weeks ago when OPEC was threatening to cut production. I didn't want to ride it down to $18 again (@ the 3rd qtr report the major investor indicated they would be selling some shares and the stock dropped from 23 to 18 in about 3 days) and could use the gains to offset some capital losses, versus having some dividend income. There is now more ships to carry less products and we've seen the suez double hull tanker rate drop by 10k a day and Samsung is building more of these vessels. I still think its good for the dividend but not sure if $18 is the bottom or more like $15 (or $12) area as dividend decreases. Of course you can't listen to the cc so finding out what is going on is difficult. Just some thoughts (I might have posted the dividend history on the NAT thread up till the last dividend). Tim Tim