21% Yielding Bulk Carrier Stock--but you have to buy shares TODAY
Hey Subscriber,
Quick check-in: Is everyone OK from the "Omicron Over Reaction" muscle memory reflex from March 2020?
With the dust settling on the 30-50% beat down on most of ultra high flying SaaS stocks and sectors we have been AVOIDING, we are able now I think to separate the now innate trader/black box reflex to SELL stocks when we get another virus mutation (and Lord knows we will have more--its a virus) and the Fed's monetary policy shift from June 2022 as the last of the QE bond-buying to now March 2022 (as reported by the NY Times, WSJ and Bloomberg--that's called in the news biz "we got a plant from the Fed--if we want to keep relations good, we run this ok?)
Omicron Update: Here is where our research on the most recent field research says we are in the Omicron mutation (note: I nor anyone in our research network are virologists nor play one on TV, but as we have been following the data 24/7, it more and more came to the attention of anyone following the efficacy reports that more and more data was saying the Omicron variant was MORE transmissible because of the 50 ish mutation in the virus "spike" but that infection was milder than Delta. In fact, Omicron in South Africa is mild enough that hospitalization rates among population rates with 20% or fewer vaccination levels we going DOWN vs. delta variant infections.
As many virologists have now pointed out, the irony of the Omicron variant is a faster infection rate with significantly lower morbidity issues actual will get us to "endemic" herd immunity levels faster. Here is the doctor in South Africa who discovered Omicron . . . they are still ground zero.
Add to the weapons against Omicron are the two new Covid pills are on their way, and they are expected to have a significant impact on how the pandemic plays out in our lives.
The pills — one from Merck and the other from Pfizer — reduce the risk of hospitalization and death if taken early in an infection. If all goes well, the F.D.A. may authorize both of them by year’s end
In the simplest terms, this means the pair of pills can help turn Covid into a more ordinary respiratory disease, similar to the common cold or the flu. And they may be just the beginning. Scientists say we will need an arsenal of drugs to deploy against new foes — especially if new variants erode the protection of existing vaccines.
“Ideally, if you tested positive for Covid-19, someone could immediately pick up antiviral pills for you at a nearby pharmacy, and you could start taking a course,” the latest research reports. “Another possibility down the line might be that people at high risk for severe Covid-19 who live in the same house as someone with an infection would get a prescription for pills to take as a preventive measure.”
Both pills prevent the virus from replicating inside the body and are broadly similar to treatments that revolutionized the battle against H.I.V. in the 1990s.
Pfizer’s drug, known as Paxlovid, may perform much better. It was originally developed to fight the coronavirus that caused SARS, but that epidemic ended before the company could test it in humans. Interim clinical trials of Paxlovid against Covid have shown terrific results: 85 percent effective when taken as instructed.
The pills may have also wider implications than just reducing the worst effects of the virus on the body. They may slow down the spread of the virus more generally because they could wipe it out quickly in a patient, decreasing the chance that it could jump to its next victim, Carl said.
But there’s a catch. For them to work effectively, they must be taken early in an infection — within five days of the start of symptoms — and access to cheap and easy rapid testing is still a challenge in the U.S.
Note: As one virologist pointed out about the US Healthcare system (the most expensive in the world by 35% over the next Western healthcare system) “When you have a health care system as deeply flawed as ours, it can be hard to take advantage of medical advances,” he said.
Net Net: Omicron’s emergence is so recent that it will take a while before experts know whether it is more pathogenic than the delta. We also know that covid hospitalizations lag new infections by two weeks or more--but the early data on Omicron infections is significantly LESS harmful symptoms and existing vaccines WITH booster shots are STILL resulting in a significant reduction in serious illness and hospitalizations.
PS--the latest data we have from insiders in the FDA is that "It now appears that vaccines are helping our natural virus-killing T cells to reduce symptoms in both Delta and now Omicron viruses." If you forgot what our T cells do, here is a quick tutorial--in short they are the SECOND line of defense against viral infections.
High Inflation, Falling Unemployment Prompted Powell’s Fed Pivot
The Fed must have been reading our "transitory really?" editorial content LOL...here is the front-page headline from the WSJ this morning
Fed officials have laid the groundwork to more quickly end a pandemic-era stimulus program at their meeting next week
It was about time reality entered the Fed narrative no?
My point starting with September inflation and labor hiring gains has simply been "You can't fight the Fed mandate for "full employment" AND fight price inflation caused partly by supply chain bottlenecks but mostly very sticky wage with monetary policy!
Hazza! The Wall Street Journal and Bloomberg are both reporting that the "end the bond-buying taper by June is now March 2022.
Net Net: That takes SOME of the risks to stocks off the table--#1 risk being the Fed caught being "too far behind the inflation curve" and having to slam the brakes on the US economy with rapid and radical short term interest rate hikes.)
Pounding The Table of Star Bulk Carriers SBLK--You HAVE to Buy Shares TODAY to get $1.25 Dividend in December (goes ex-dividend tomorrow)
Apologies for the rush here, but TC our Wealth Management trader noticed this morning that our favorite bulk carrier shipper (who just doubled their quarterly dividend to $1.25 and a 21% yield with 25-30% upside as China resumes importing iron ore last week and Opec+ adds 400,000 barrels of oil to export every DAY.
If you just read their latest report on how in the last year they have
1) paid down a serious amount of debt
2) added new tankers to their industry leading fleet
3) have quadrupled their .30 quarterly dividend to $1.25 (21% yield)
| Year | Declare Date | Ex-Div Date | Record Date | Pay Date | Frequency | Amount | Adj. Amount |
|---|---|---|---|---|---|---|---|
| 2021 | 11/16/2021 | 12/9/2021 | 12/10/2021 | 12/22/2021 | Quarterly | 1.2500 | 1.2500 |
| 2021 | 8/5/2021 | 8/19/2021 | 8/23/2021 | 9/8/2021 | Quarterly | 0.7000 | 0.7000 |
| 2021 | 5/19/2021 | 5/27/2021 | 5/31/2021 | 6/14/2021 | Quarterly | 0.3000 | 0.3000 |
4) opened the door to a HIGHER quarterly dividend rate in 2022
and understood that SBLK dividend is about 80% higher than the next highest dividend rate of competitive fleet operators, you would see the important picture here.
Here is the earnings presentation and slide deck that really explains the opportunity here--IF YOU ACT TODAY!
SBLK Investor Deck
Again sorry for such short notice...but GO TO THE Investor Deck and make sure you see the 2022 forecasts for increases in EVERY sector of bulk shipping...and look at the AMAZING increase in cash flow from operations and their very aggressive dividend payment structure.
My case is simple here--we are making a LOT of money playing the giant demand vs. supply imbalances in the commercial world as we slowly pull out of the Covid-19 gravitational downward pull. VERY few (if any) new Capesize bulk carrier ships are coming into the market in 2022--thanks to Covid shutdowns.
SBLK is in the sweet spot to make record profits (and pay even higher dividends) as they have ALL the ships they need and all the cash they need to pay 21% dividends AND buy back a ton of shares.
We will have a bunch more of these 2022 Strong Demand vs. Weak/Short Supply Imbalance plays from semiconductors to the Millennial Housing Boom in America-- time to buy SBLK right now to get the $1.25 dividend and $5 of dividends (or higher) over the next 12 months!
Snooze you lose!