Tanker Market, Three month overview

Knotty seems to be the tanker market, since there is a controversy between market data and investor’s attitude.

Upward trend appear to show imports of crude oil in China, according to China’s National Bureau of Statistics while on the other side of the Pacific, EIA (Energy Information Agency) and DOE (Department of Energy) expect U.S. to produce more oil in 2013 as drilling activities remain high, which means that more domestic oil will be used from U.S. refiners hence the reduced imports, negative for tankers operators.

Euronav NV's three month performance and tanker market

Euronav NV “EURN:BB” is an integrated owner, operator and manager able to provide complete shipping services in addition to the carriage of crude oil on its fleet of modern large tankers.

Euronav NV’s shares jumped 103,16% within three months. (21/10/2013-20/01/2014)

Can Underwriters Reputation affect your share performance?

Why is that happening?

First of all, the underwriter is usually an investment bank that employs IPO specialists. These bankers ensure that the firm satisfies all regulatory requirements, such as filing with the appropriate bodies and depositing all fees, and makes all mandatory financial data available to the public.

Factors infuencing the performance of IPOs

The major influencing IPO factors in accordance with our research are:

1.Firm Size (SIZE):

Firm Size is one of the most major influencing factors. Many small firms want to go public to raise capital to finance their new investments and reduce their high level of debt, especially in young shipping companies, where the debt ratio is over 70%. 

Is Facebook able to endure the pressure?

New researches shows that young people prefer other social networks in spite of Facebook especially in Europe and USA. Facebook Inc. get a lot of pressure by market analysts and Mark Zuckerberg ( CEO and Founder) and his management team searching for new ideas, to attract again young people on their social network.

IPOs fast profit makers?

Why fast? Lot of academic researchers (Ritter 1991, 2009, 2013, Loughram et al 2008) found out that US-listed IPOs can produce wealth to investors in the First day of trading!