Thursday, April 5, 2007

Tankers Index

I am going to start a shipping tanker index. I am interested in the shipping tankers that pay a juicy dividend. I will be using the index to help me identify when to enter and when to exit my positions in the tanker stocks.
The criteria for my tanker index is as follows:

1. Must trade on an American Exchange (AMEX, NYSE, or NASDAQ)
2. Must have a Market Cap of at least $500 Million
3. Must have a dividend yield of at least 4%
4. Must be in the cargo shipping business, with a fleet of tankers.
5. It will be start out as an equal weight index, so a DryShips will have as much influence on the index as a Knightsbridge.

The candidates I have so far for my index include:

1. Diana Shipping (DSX)
2. DryShips (DRYS)
3. Eagle Bulk Shipping (EGLE)
4. FrontLine (FRO)
5. Genco (GSTL)
6. General Maritime Corp. (GMR)
7. KnightsBridge Tankers (VLCCF)
8. Nordic American Tankers (NAT)
9. Quintana Maritime (QMAR)
10. Ship Finance International (SFL)

On the watchlist is DHT and ATB, both of which will enter into the index once they reach the MktCap minimum requirement.

Initial value of the index is 10,000. I will report at least once a week on this index.

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