Teekay Corp (NYSE:TK)

kpedo2000 (< 20) Submitted: 9/4/2007 12:44:38 PM : Start Price: $46.47 TK Score: -31.33

Teekay shipping is increasing returns on capital by spinning off assets (tankers, etc) into limited partnerships but retaining and increasing amount of future cash flows. Financial engineering at its best.

JPYTradersDotCom (< 20) Submitted: 8/12/2007 8:09:35 AM : Start Price: $45.08 TK Score: -30.94

Cheap in a very attractive sector. Bought at $55.80 on 10 August, 2007. Top pick by AngeloGrigoropoulos.Com

aebdoicu812 (< 20) Submitted: 5/17/2007 4:51:16 PM : Start Price: $48.12 TK Score: -31.94

subsidiaries

POWFred (33.99) Submitted: 5/3/2007 5:27:44 PM : Start Price: $48.43 TK Score: -33.09

established company will continue to do well for as long as oil lasts. at least another 50-60 years.

cbixel (< 20) Submitted: 4/19/2007 8:39:57 PM : Start Price: $46.33 TK Score: +31.97

Choose the best answer:
A)TK is too expensive
B)OSG (Overseas Shipholding) is too cheap
C)both A and B are true

Clues:

TK is a large fleet of oil tankers.
OSG is a large fleet of oil tankers.
TK and OSG have two important differences:

1)TK has more debt, and

2)TK's PE is 17 on steadily falling earnings (2004--$8.63/share; 2005--6.83/share; 2006--3.49 per share); vs 6 for OSG, also on falling earnings.

It's not that either company is in any trouble. Tanker rates are cyclical. Rates (and earnings) went way up, so everyone built a bunch of boats, so too much supply is coming on line, so rates (and earnings) are going way down. One day, they will go back up.

It's just that two similar companies should have similar PEs and most likely will, sooner or later.

GeorgietheCorgie (59.95) Submitted: 11/18/2006 9:07:44 AM : Start Price: $33.06 TK Score: -12.75

Oil shipments should go up. Has a strong LNG fleet.