Scorpio Tankers Increased

By on June 1, 2020

Scorpio Tankers YTD ChartI made a decision to increase the allocation to Scorpio Tankers (STNG) in the SMA Portfolio from 2.0% to 3.5%. STNG was purchased at $17.50.

Scorpio is a $1 billion company and operates product (clean) tankers which transport refined petroleum. The company is headquartered in Monaco.

I have faith that industry veteran Robert Bugbee, CEO, will lead STNG through the ups and downs of this business. It’s no secret that tankers have been very profitable over the past few months. The future is unclear, but there has been underinvestment in the industry because returns have been lousy over the better part of a decade. This could be a setup for continued prosperity for efficiently run businesses in the industry.

Disclaimer: It is very challenging to outperform a buy and hold strategy. Historically, investors have found themselves well-served over the long-term by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. All investors are advised to conduct their own independent research into individual stocks, closed-end funds, mutual funds, and exchange traded funds or any other investment vehicle before making a purchase decision. In addition, investors are advised that past performance has demonstrated no relation to future performance. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

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