Golar LNG crowned the stock pick of the decade

Financial analysts from Value Investor’s Edge have christened NASDAQ-listed Golar LNG as the “stock of the decade” as global LNG trade surges, led by Asian demand.

LNG is in extremely high demand in Asia, with forward prices hitting the $12s for November and $13s in January, compared to US prices at $3.

“This,”  Value Investor’s Edge stated in a report posted on Seeking Alpha on Wednesday, “is leading to the strongest arbitrage opportunity we’ve ever seen in shipping. Unsurprisingly, LNG spot rates are soaring. Last week’s quote was $90k/day, up from $40k last year.”

This week, Golar reported the tri-fuel diesel electric (TFDE) market was $100,000 a day. These are the strongest levels since 2014.

“Demand is set to easily outpace supply growth (new ships) until at least 2021,” Value Investor’s Edge predicted, suggesting rates could climb to as high as $150,000 a day.

Golar LNG has 13 LNG ships on spot, including 10 modern TFDE carriers.

“Q3 and Q4 earnings set for a massive blowout. Target: $40/sh, 52% upside,” Value Investor’s Edge claimed.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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