Fredriksen’s family “in the money”

On September 6. Geveran sold 7,44 million FLNG shares to “family” members in a TRS agreement that expires December 6. 2018 .

Betting on behalf of his family that share price will go up, the family members already have millions in unrealized gains. The TRS was bought at 12,15 kroner meaning that gains above this price is now substantial.

The questions investors should ask are:

  1. Will Fredriksen prolong this TRS and reap dividend benefits next year as well as the actual share gains?
  2. How far will he pump up the share price for the benefit of his family?
  3. When will he return the swap, and at what price?

Given the huge amount of shares it is likely to think he wants big rewards, if so, how many kroner up? Will it go even beyond the consensus of brokers?

For now we know market will be very strong, it might even go ATH and Fredriksen has the best setting to make this yet another successful story in shipping.

Total Return Swap agreement

Technical analysis is pointing straight up and next resistance level is around 14,50 kroner, this one I expect will be very weak and new highs might come after this.

FLNG bull technical analysis

Yesterday saw FLNG pass the short sellers entry point at 13 kr, incidentally this was of course also the resistance. The high vessel rates we are seeing is the reason behind the breakout. Certainly this will make it more difficult for the short sellers. As we saw yesterday they don’t give up easily, but there is no way back now, resistance is broken and the trend is up supported by strong fundamentals.

Next resistance level is at around 14,50 kroner, but this one is very weak and I expect the stock to advance to a somewhat more comfortable levels between 16-18 kroner ahead of Q3 which should show a plus. Knowing that FLNG has the best vessels and leadership coupled with a newbuilds coming at the right time and in the most interesting market for years to come this stock might see several 10’s of kroners up before dividends set in.

Take your seats, short covering could make this a winner for the rest of the week.

Technical analysis 13.09.2018 FLEX LNG Ltd _ Oslo Bors_ FLNG

FLEX LNG short-cover rocket fuel

Short was set at 13 kroner in Flex LNG, as we now passed 13 kroner and as rates are jumping I expect around 1,5 million shares to be covered at higher price. Be prepared for several kroner up from this level as very few shares have so far been bought back by short sellers.

POSITION HOLDER SHORT POSITION SHORT PERCENT POSITION DATE (DD.MM.YYYY)
MACQUARIE FUNDS MANAGEMENT HONG KONG LIMITED – < 0,5% 02.08.2018
MACQUARIE FUNDS MANAGEMENT HONG KONG LIMITED 1 842 859 0,50% 11.07.2018

Technical indicators are in the positive also and FLNG will most likely enter unknow territory on the way upwards.

Technical analysis FLEX LNG Ltd _ Oslo Bors_ FLNG

LNG carrier spot rates soar

Spot rates are reported to soar, already exceeding $85000 a day on Atlantic trade, and this is only the beginning as market are tightening.

Flex LNG has started to move higher and also brokers are giving higher estimates on share pricing, consensus is now at NOK 18,80 while share price is at NOK 12,30. I expect not before long the short will be covered, fueling higher price and the share should go beyond NOK 16 in the next weeks. FLNG sentiment is now bullish with several technical indicators pointing to a breakout.

LNG carrier spot rates soar as US export developments continue apace

 

LNG rates to exceed last winter’s top

The battle for LNG cargoes has begun, Asia and Europe are stocking up and rates are going up, LNG shipping rates are starting to move higher. Expect rates to be very high, and as such good business for companies for a long time.

DNV promotes LNG. The whole world is going for LNG, this huge market is emerging faster now and be sure to buy shares in good companies while price is still low.

DNV GL promotes ‘carbon-robust’ shipping in Energy Transition Outlook