Day Rates for Capes Surge Overnight Equals Unencumbered Gains for Dry Bulkers Again

The day rates for the most popular large dry bulk vessels, capesizes, soared by more than 10% overnight — which is now fueling the speculative fires in the bulkers this morning.

One of particular interest is DCIX. They just reported abysmal earnings and the stock is ripping higher because of it. The stock has lifted from $2 to $16 over the past five days.

Reports Q3 (Sep) loss of $13.84 per share, includes charges, may not be comparable to the single analyst estimate of ($0.78); revenues fell 50.3% year/year to $8 mln vs the $8.1 mln single analyst estimate

The loss for the third quarter of 2016 was mainly the result of $118.9 million of impairment charges for seven of the co’s vessels, without which the result for the quarter would have been a net loss of $7.9 million

Time charter revenues, net of prepaid charter revenue amortization, were $8.0 million for the third quarter of 2016, compared to $16.1 million for the same period of 2015, mainly due to reduced employment opportunities and time charter rates
Time charter equivalent (TCE) rate was $5,977/day in the quarter, well below last year’s quarter of $12,654/day
Meanwhile, daily vessel operating expenses for the quarter were $6,620/day vs. last year’s quarter of $7,314/day

Via Exodus, here’s the full list of shippers. Below them are the tankers, in the event this idiocy spreads to that disheveled sector too.

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Wall Street is yawning off a slew of better than expected rigged data out this morning, painting an effervescent economy that is fair and equitable to all and booming like a motherfucker.

CPI is running hot, to the point of  needing immediate Fed hikes. Also, housing starts have, all of a sudden, skyrocketed. Be sure to log into Zillow today: I’m quite sure the value of your home is flat to down in spite of these marvelous numbers.

Lastly, the Philly Fed came in better than expected as well — which is actual evidence that the renaissance is upon you. Do not listen to fake news sites that tell you otherwise.

Thank you.

October Headline CPI +0.4% vs +0.4% Briefing.com consensus, Core CPI M/M +0.1% vs +0.2% Briefing.com consensus

October Building Permits 1229K vs 1200K Briefing.com consensus; Prior 1225K

October Housing Starts 1323K vs 1178K Briefing.com consensus; prior revised to 1054K from 1047K

Initial Jobless Claims 235K vs 257K Briefing.com consensus; Prior 254K

November Philadelphia Fed 7.6 vs 7.0 Briefing.com consensus

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Good God, what in the world is she talking about now? Yellen is saying rates must be hiked now, in order to stave off excessive risk taking and financial instability? Where has she been for the past 4 years of QE fueled idiocy in the markets — starring one blown up VC funded IPO after the next?

But now that Trump is about to take over, she’s gonna get very serious about rigged markets and will make sure the Fed cools things down. After all, inflation is such a concern for the every day working blue collar’d American steel factory fuckhead of a worker. Right? Yes?

“Were the FOMC to delay increases in the federal funds rate for too long, it could end up having to tighten policy relatively abruptly to keep the economy from significantly overshooting both of the Committee’s longer-run policy goals,” Yellen said. “Moreover, holding the federal funds rate at its current level for too long could also encourage excessive risk-taking and ultimately undermine financial stability.”

While stating the case for an imminent hike, Yellen also repeated her pledge that subsequent hikes will come at a gradual pace. Critics have worried that the Fed has missed opportunities to normalize policy, but Yellen said “the risk of falling behind the curve in the near future appears limited, and gradual increases in the federal funds rate will likely be sufficient to get to a neutral policy stance over the next few years.”

Yellen said the economy is making progress toward the Fed’s goals of maximum employment and price stability but still “has a bit more room to run.” Inflation is running faster and GDP growth has picked up as well, though business investment remains soft and consumer spending is posting moderate gains.

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This bodes well for the retail landscape this holiday season. And, in spite of Samsung, Best Buy is guiding higher. The stock hasn’t been this awesome since 2007, when Tom Tom GPS devices were all the rage.

Reports Q3 (Oct) earnings of $0.62 per share, excluding non-recurring items, $0.15 better than the Capital IQ Consensus of $0.47; revenues rose 1.4% year/year to $8.95 bln vs the $8.85 bln Capital IQ Consensus.

Comps +1.8% vs. +1% guidance.

Domestic revenue of $8.2 billion increased 1.3% versus last year driven by comparable sales growth of 1.8%, partially offset by the loss of revenue from 14 large format and 23 Best Buy Mobile store closures. Industry revenue in the NPD-tracked categories declined 3.1%.4

From a merchandising perspective, comparable sales growth in home theater, mobile phones, wearables and connected home was partially offset by declines in gaming.

Domestic online revenue of $881 million increased 24.1% on a comparable basis primarily due to increased traffic, higher average order values and higher conversion rates. As a percentage of total Domestic revenue, online revenue increased 200 basis points to 10.8% versus 8.8% last year.

Domestic GAAP and non-GAAP gross profit rate was 24.7% versus 24.1% last year. The 60-basis point increase was primarily due to improved margin rates in the computing and home theater categories, which were partially offset by the mobile category.
Co issues mixed guidance for Q4, sees EPS of $1.62-1.67, excluding non-recurring items, vs. $1.58 Capital IQ Consensus Estimate; sees Q4 revs of $13.4-13.6 bln vs. $13.7 bln Capital IQ Consensus; comparable sales change in the range of (1.0%) to 1.0% vs. ests near +1.2%; domestic comparable sales change in the range of (1.0%) to 1.0%; International comparable sales change in the range of (2.0%) to 2.0%

“From a revenue standpoint, we are excited by the rate of technology innovation, the quality of our assortment and our ability to execute. That being said, we have updated our original expectations to incorporate the impact of recent product recalls and the fact that certain products will simply not be available for sale during our fourth quarter. The expected impact of these recalls on our fourth quarter Domestic revenue is ~$200 million.”

UPDATE via Briefing.com, notes from call

In store traffic unchanged while ticket and online traffic is up.

Excited about product innovation.

Vendor partnerships continue to benefit the company.

Gross margin strength computing and home theater categories, which were partially offset by the mobile category.

Best Buy is doing well at the high end of the TV/home entertainment space as co offers the best customer experience in terms of offerings and service.

Lower ASP with great products/innovations: 4K, OELD — driving consumer interest.

Streaming devices also doing well.

Computing industry not necessarily doing great but co’s assortment and exclusive offerings/partnerships are a very important strength; MSFT/AAPL

Strength in mobile (iPhone) offset by Samsung recall; AT&T/VZW store within stores growing

iPhone in-line with expectations, not as strong as 6 but better than 6S last year; ability to buy from multiple carries helps supply.

Appliances +3% vs. +16% last year, slowed late in quarter due to Samsung recall and inventory constraints; continuing to gain material market share.

Home automation, drones and VR doing well but still early.
Continues to experimenting with new features to enhance customer service — e.g. in home advisory pilot.

Promotional activity will not be subdued for the holiday this year. Sees Q4 gross margin flattish to slightly higher Y/Y; slightly positive service comps.

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In a perfect world, this deal should be permitted to occur. But now that the EPA is literally a holding pen for future unemployed cucks, TSO thinks they have a license to steal from the American people. As such, they’re acquiring one of their few competitors, WNR, for $37.30 per share.

In my opinion, this borders on monopoly and the government should tell them to eat a bag of dicks, instead of swallowing WNR. But the Trump administration isn’t likely to be monopoly unfriendly and will let this deal get down. Bear in mind, Trump is all about getting deals done. The more deals the better.

I could really veer off the reservation very easily now, going heavy into this bitch of a deal; but that’d be selfish of me. Trump is a true American and anything I assume about his administration now is pure conjecture, making me no worse than all of you fruit basketed retards.

Many of you know my fondness to WNR, with it being my largest holding several times during my wasteful career as a manager of money. An end of an era is upon you; the WNR has been acquired.

Tesoro Corporation (TSO) and Western Refining jointly announced a definitive agreement under which Tesoro will acquire Western at an implied current price of $37.30 per Western share in a stock transaction, representing an equity value of $4.1 billion based on Tesoro’s closing stock price of $85.74 on November 16, 2016. This represents an enterprise value of $6.4 billion, including the assumption of approximately $1.7 billion of Western’s net debt and the $605 million market value of non-controlling interest in Western Refining Logistics, LP (WNRL).

The acquisition is expected to create a premier, highly integrated and geographically diversified refining, marketing and logistics company and provides a strong platform for earnings growth and cash flow generation.

Under the terms of the agreement, Western shareholders can elect to receive 0.4350 shares of Tesoro for each share of Western stock they own, or $37.30 in cash per share of Western stock. Elections to receive cash will be subject to proration to the extent they exceed approximately 10.8 million shares (or approximately $404 million in the aggregate). Stock elections will not be subject to proration. The purchase price represents a premium of 22.3% to the closing price of Western’s stock on the day prior to announcement, and a 31.6% premium to the volume weighted average price over the last 30 trading days. The transaction is expected to be tax-free to Western’s shareholders who elect stock.

Expected benefits of the transaction:
Shareholders of both companies will benefit from $350 to $425 million in operational, commercial and corporate synergies.
Expects to achieve 10% to 13% EPS accretion in 2018, the first full year of combined operations

Upon closing, Tesoro will continue to have a strong balance sheet and credit metrics, and will remain on track for achieving an investment grade credit rating. The Company has increased its share repurchase authorization by $1.0 billion to over $2.0 billion in total. Tesoro expects to maintain its current quarterly dividend of $0.55 per share (or $2.20 per share annualized) after closing and is focused on growing dividends commensurate with the growth of the Company.

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As a nation, we’re fucking doomed if allow kids like this rule our country. Low information, fake news believing, snowflakes.

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She really did go there. Next she’s gonnas exortiate the intolerant left for being cucks and taking up all the salt — bitching and whining because they lost and have been raised without ever having to deal with adversity.

Remember, everyone is a winner. If you finish last place, you will still get a trophy. Even though your candidate lost, feel free to bitch and complain about the popular vote and work towards denigrating state’s rights by calling for an end to the electoral college.

Mental fucking retards.

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Last night President elect Trump went to the 21 Club in NYC for a quiet evening dinner with his family. In the process of doing so, Trump told the enemy media of ‘fake news’ printing fuckers to bugger off. Since then, all pandemonium has broken loose.

Listen to this cuck from Bloomberg say the media was entitled, according to the rules, mandatory shit, to be the President’s paparazzi 24/7. These same shills have been lying for the past 15 months, totally exposed as frauds in the Wikileaks as being part of the state media complex supporting Clinton, and now they’re claiming that Trump MUST allow them to tailgate him for ‘democracy.’

That’s like saying ‘you must let me rape you, in order to preserve the human race from extinction.’

Fuck yourself, media. Just watch this guy. Please don’t vomit all over your electronic devices while viewing.

.@MarkHalperin pushes for a protective press pool for Trump because of 'accountability': This is an important fight https://t.co/702oSuzPHz

— Morning Joe (@Morning_Joe) November 16, 2016

Where in the constitution does it say the retards hopped up on drugs in the press pool must be permitted to follow the President to dinner? Good luck winning this all important battle, mainstream media.

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In my opinion, Jim Chanos is one of the top 5 investors alive today. Not only is he whip-smart, somehow he manages to make great short calls during a QE-fueled bull market. This, unto itself, is a major accomplishment.

Jim sits down with Bloomberg to discuss the markets, the Trump ascendancy, and investors’ pipe dreams of an infrastructure led renaissance in the U.S. economy.

Spoiler: he’s as bearish as ever.

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Good news for all of you who’d like to see the country burn, Fortune is reporting that Jamie Dimon has officially declined the role as Trump’s treasury secretary — much to the delight of JPM shareholders.

As J.P. Morgan Chase shares are dropping on the rumor.

The Trump transition team’s draft-Dimon effort will need to look for a new pick.

Fortune has learned that Jamie Dimon, CEO of J.P. Morgan Chase JPM -2.66% , has formally told the Trump transition team that he has no interest in being the next Treasury Secretary of the United States.

According to sources familiar with the situation, the Trump transition team approached Dimon about taking the job, and spread word that the J.P. Morgan CEO was likely to accept. On Wednesday, Fox News anchor Maria Bartiromo tweeted that Dimon “will get” the Treasury Secretary position.

But Dimon has told the suitors that he’s declining, and will remain at the nation’s largest bank, measured on both market cap and assets. Surprisingly, Dimon feels he’s not suited to serving as the nation’s top ranking economic official, according to sources familiar with the situation.

According to rumors, Steve Mnuchin, former Goldman Sachs partner, is now the leading candidate for the role. Goldman wins again, even when they lose.

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