Stock Pick

  • Oil Ship Cluster Off China Grows With Swelling Onshore Tanks

    Oil Ship Cluster Off China Grows With Swelling Onshore Tanks(Bloomberg) — The cluster of oil tankers off China’s coast is growing and the vessels are waiting longer to offload their cargoes amid a lack of onshore storage space after a buying spree earlier this year.The number of oil-laden tankers parked in Chinese waters has swelled since the start of the month with almost 200 ships expected over the course of June, according to vessel-tracking information compiled by Bloomberg and data intelligence firm Kpler. Crude imports surged to a record in May as demand rebounded after the easing of lockdown restrictions.The congestion illustrates the explosion in purchases by Chinese refiners as the country re-opened after shutting down to contain the coronavirus. The rush for cheap crude is overwhelming port infrastructure and storage amid an influx of cargoes from the Middle East, Latin America, Russia and West Africa.China’s oil demand rebounded rapidly from the demand destruction wrought by the outbreak, but there are concerns about a possible second wave of infections after new cases emerged in Beijing. However, Chinese crude imports are expected to expand further this month, with Kpler estimating overseas shipments could reach more than 14 million barrels a day. That would be a jump of over 20% from the record set in May.At least 32 vessels are sitting off the coast, up from around two dozen earlier in the month, with one ship that arrived in May set to take more than four weeks to discharge its full cargo due to limited tank space. That compares with a typical pre-virus wait time of around five days for a ship to offload.Almost half of the waiting tankers are Very-Large Crude Carriers, while the rest are smaller Aframaxes and Suezmaxes. Vessels have arrived at ports including Qingdao, Rizhao, Yantai, Tianjin and Yingkou, according to ship-tracking data and broker reports.The VLCC New Journey, which loaded Angolan oil in mid-April, arrived around May 19 off Shandong, the home to most of China’s independent refiners. It could only discharge about half of its 1.9-million barrel cargo at Rizhao on June 2 because of limited storage space before heading back to its anchorage, according to refinery officials with direct knowledge of the matter. The rest of the crude will be offloaded at a different terminal later this month, they said.Swelling InventoriesStockpiles at seven ports in Shandong province were at almost 48 million barrels as of June 12, the highest level in four months. Inventories fell about 10% through the week ended June 19.Processing rates by Shandong’s independent refiners, known as teapots, surged to a record earlier this month, rising strongly after hitting a low in February due to virus-driven lockdowns. China’s crude inventories are expected to gain by 440 million barrels during the first half of this year, the most ever for any country during a six-month period, according IHS Markit.While most of the inbound crude is for refiners, a portion has been purchased by traders which last month sought to take advantage of the premium of Chinese crude futures to the global benchmark Brent, according to commodities researcher ICIS. The oil is delivered into storage monitored by the Shanghai International Energy Exchange, allowing traders to offset their short positions and bank a profit, said Li Li, an analyst at ICIS.At its peak, the mark-to-market profit was $7 a barrel in May, but the spread has since flipped to a loss of $2, making the trade no longer attractive, said Li, adding that less buying from traders will help to ease congestion next month.(Updates Shandong stockpiles in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    from Yahoo Finance https://ift.tt/2Ydz4SC

  • COVID-19: why hard-hit dividend shares could make you a fortune in 10 years

    dividend shares

    Many dividend shares have experienced difficult trading conditions over recent months. COVID-19 is an unprecedented crisis that has produced a challenging outlook for a wide range of businesses. This may dissuade many investors from buying high-quality companies at the present time.

    However, rising demand for income shares due to low-interest rates suggest that now could be the right time to purchase a diverse range of dividend shares. They could produce high returns that make you a fortune over the next 10 years.

    Rising demand for dividend shares

    Demand for dividend shares may not be especially high at the present time. After all, risks such as trade tensions between the US and China, and the prospect of a second wave of coronavirus, could cause difficult trading conditions for many.

    However, companies that maintain shareholder payouts in the medium term may experience high demand from income-seeking investors. They are unlikely to have plenty of alternative options available in an era where low-interest rates are set to remain in place. For example, investors who had relied on bonds or cash in the past to generate an income may now focus their capital on dividend shares.

    Rising demand for income shares could mean that their prices rise. As such, they may produce high capital returns that boost your portfolio’s prospects in the next decade.

    Economic recovery

    Buying dividend shares while an economic recovery is uncertain could be a sound move. At the present time, weak GDP growth could cause many investors to doubt the capacity of the global economy to bounce back from recent difficulties. This is an understandable view, often present during bear markets and recessions.

    However, past performance of the economy shows it has always recovered to produce improving growth after even severe difficulties. This time, major stimulus packages have been announced across many large economies. They could catalyse the trading conditions for a wide range of companies. This could then lead to rising profitability and a greater capacity to pay improving dividends.

    Capitalising on a recovery

    It’s difficult to ascertain which industries will produce the quickest and strongest recovery from present economic challenges. Therefore, buying a diverse range of dividend shares could be a shrewd move. By spreading the risk across a number of companies, you can limit your exposure to a concentrated few businesses and benefit from the likely growth of the wider economy. This strategy could boost your portfolio’s performance and improve your financial position over the next decade.

    Looking for shares to consider? Have a read of our below report.

    3 “Double Down” stocks to ride the bull market higher

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has identified three stocks he thinks can ride the bull market even higher, potentially supercharging your wealth in 2020 and beyond.

    Doc Mahanti likes them so much he has issued “double down” buy alerts on all three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    See the Double Down Stocks

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post COVID-19: why hard-hit dividend shares could make you a fortune in 10 years appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2NdT9C2

  • 3 ASX growth shares that could be future market beaters

    tech growth shares

    If you’re a fan of growth shares then you might want to check out the shares listed below.

    I believe that all three are well-placed to grow their earnings at a rapid rate over the coming years. Here’s why I think they could be future market-beaters:

    Aristocrat Leisure Limited (ASX: ALL)

    The first growth share to consider buying is this gaming technology company. Its shares have fallen heavily this year due to the negative impact of the pandemic on its poker machine business. While this is disappointing, it is worth remembering that this is only a short term headwind and demand for its poker machines will soon rebound. When it does, this should complement the fast-growing digital business which has been benefiting greatly by casino closures and lockdowns.

    Megaport Ltd (ASX: MP1)

    Another growth share to consider buying is Megaport. It is an elasticity connectivity and network services company which offers a service which allows its customers to increase and decrease their available bandwidth in response to their own demand requirements. This is proving very popular because it means a user no longer has to be tied to a fixed service level on long-term and expensive contracts. Demand for its service has been growing very strongly, leading to stellar recurring revenue growth. I expect this trend to continue for some time to come thanks to the cloud computing boom.

    Nanosonics Ltd (ASX: NAN)

    Another ASX growth share to consider buying is Nanosonics. It is an infection prevention company which I believe has the potential to grow materially in the future. This is due to the large market opportunity of its industry-leading trophon EPR disinfection system for ultrasound probes and the upcoming release of secret new products targeting other unmet needs. Nanosonics is remaining tight-lipped on these products, but has mentioned that its first new product has a similar market opportunity to the trophon EPR system.

    And here are more growth shares which could be stars of the future…

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO and Nanosonics Limited. The Motley Fool Australia has recommended MEGAPORT FPO and Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 3 ASX growth shares that could be future market beaters appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/3fEA3RK

The Latest

  • Outstanding Shares and Stock Floats

    ·

  • NVDA | Will NVIDIA Get a Boost From New Gaming Laptops? March was a record quarter for digital spending on games.

    ·

  • Most Anticipated Earnings Releases for the trading week beginning May 11th, 2020

    ·

  • Mark Cuban’s Secret Shopper Study Finds That 96% of Dallas Businesses Don’t Comply With Reopening Guidelines. This is going to get bad.

    ·