My TORM Pick In 2021 Smoked All Big Tech Gains

seekingalpha02-13

TORM plc has experienced a total return of +523% over 37 months, outperforming each of the "Magnificent 7" Big Tech companies.The deep-value TORM proposition no longer exists, but shares remain an ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2411354258?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-02-13 21:37","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2411354258","market":"us","top_or_hot":-1,"title":"My TORM Pick In 2021 Smoked All Big Tech Gains","media":"seekingalpha","content":"<div>\n<p>TORM plc has experienced a total return of +523% over 37 months, outperforming each of the \"Magnificent 7\" Big Tech companies.The deep-value TORM proposition no longer exists, but shares remain an ...</p>\n\n<a href=\"https://seekingalpha.com/article/4669730-torm-stock-my-pick-2021-smoked-all-big-tech-gains\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>My TORM Pick In 2021 Smoked All Big Tech Gains</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMy TORM Pick In 2021 Smoked All Big Tech Gains\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-02-13 21:37 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4669730-torm-stock-my-pick-2021-smoked-all-big-tech-gains><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>TORM plc has experienced a total return of +523% over 37 months, outperforming each of the \"Magnificent 7\" Big Tech companies.The deep-value TORM proposition no longer exists, but shares remain an ...</p>\n\n<a href=\"https://seekingalpha.com/article/4669730-torm-stock-my-pick-2021-smoked-all-big-tech-gains\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4144","symbol_name":"石油与天然气的储存和运输","start_time":0,"source_url":"https://seekingalpha.com/article/4669730-torm-stock-my-pick-2021-smoked-all-big-tech-gains","article_id":"2411354258","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2411354258","pubTimestamp":1707831467,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Let me give readers an example of how owning a capital-intensive business, with strong management, deep value, and a conservative balance sheet can work out during an unexpected industry upswing. Seeking Alpha - Paul Franke, TORM plc Article, January 26th, 2021 My TORM plc  pick from January 2021 has outlined a total return, including dividends, of +523% over 37 months. That's an investment advance, besting each of the Magnificent 7 over the same span!","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4144":"石油与天然气的储存和运输","PBF":"PBF Energy","BK4138":"石油与天然气的炼制和营销","BK4109":"特种化学制品","TORM":"TOR矿物国际","BK4585":"ETF&股票定投概念","TRMD":"Torm PLC","BK4588":"碎股"},"translate_title":"我在2021年的TORM选择吸干了所有重大科技收益","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PBF":1,"TORM":1,"TRMD":1},"content_text":"TORM plc has experienced a total return of +523% over 37 months, outperforming each of the \"Magnificent 7\" Big Tech companies.The deep-value TORM proposition no longer exists, but shares remain an investible idea with a high dividend yield.Many successful long-term investors search for underfollowed or unwanted stock names selling at steep discounts to underlying net assets.Lighthouse Films/DigitalVision via Getty Images I know everyone is fawning over the huge 2023 and early 2024 Big Tech gains in America, especially from the Magnificent 7 in the news daily. Nevertheless, investor gains just as significant can be achieved by owning boring companies after years of flat pricing and steadily building pent-up value. What am I talking about? Let me give readers an example of how owning a capital-intensive business, with strong management, deep value, and a conservative balance sheet can work out during an unexpected industry upswing. Seeking Alpha - Paul Franke, TORM plc Article, January 26th, 2021 My TORM plc (NASDAQ:TRMD) pick from January 2021 has outlined a total return, including dividends, of +523% over 37 months. That's an investment advance, besting each of the Magnificent 7 over the same span! YCharts - TORM plc vs. QQQ and Magnificent 7, Total Returns, Since January 26th, 2021 TORM is an old-school ocean shipper with 80 owned vessels, founded 1889, currently managed out of Denmark and the United Kingdom. Today, the company transports refined oil products and crude oil worldwide. TORM plc Website Photo - February 11th, 2024 Those hunting for deep-value asset plays often suffer for months or sometimes years before a large payoff appears. It's the exact opposite philosophical approach and investor mentality exhibited in chasing Big Tech gains daily in early 2024. Back in 2020 and early 2021, the COVID pandemic recession kept a lid on demand for moving energy product between nations, while an oversupply of oil was slowing being worked off. TORM had already been suffering for years from limited industry growth and weak oil tanker business economics. The good news was its balance sheet was set up on the conservative side, cash flow and earnings were enough to survive the downturn, and the stock quote was selling for about 50% of the net accounting value on its shipping assets. That's when I mentioned the name as having real upside potential in an improving economy after the pandemic, unaware of the strong tanker pricing future. Then, in early 2022, Russia's invasion of Ukraine changed marketplace demand (and day rates) for moving oil/gas by sea instead of through pipelines to Western Europe and Asia. Fast-forward to the escalating Middle East war situation of late 2023 and possibility for additional shipping disruptions this year. Today, investors are very willing to own TORM's 20%+ dividend yield, high level of sales/business income, with a chance the good times will continue after 2024. In effect, the cyclical script has completely flipped, all the variables from actual industry business trends and investor sentiment to the specific TORM stock valuation. Riding the upswing from incredibly undervalued and unwanted, with not much in earnings and cash flow, to a high valuation and interest by investors on far stronger operating results, DID ,generate amazing gains for long-term shareholders. Current Investment View After the dramatic rise in price from $7 a share several years ago to $34 now, the same deep-value proposition no longer exists. However, a 20%+ trailing dividend yield, alongside the ownership of oil/gas tankers generating nice sales/EPS, remains an investible idea. I would rather own TORM than a list of technology names becoming more overvalued by the day. Below we can see how the price to sales ratio has jumped meaningfully since early 2021, while price to cash flow has changed less on the far better operating environment. YCharts - TORM plc, Price to Trailing Sales & Cash Flow, Since 2020 In terms of the underlying net-asset valuation being purchased today, the price to tangible book value number has risen from 0.5x at the beginning of 2021 to 1.8x presently. So, the net-asset bargain story of years ago has faded. YCharts - TORM plc, Price to Tangible Book Value, Since 2020 Unfortunately, shippers do not have a lot of visibility when it comes to projecting sales and earnings several years down the road. But for the end of 2023 and all of 2024, Wall Street analysts are forecasting truly strong results from TORM. Amazingly, this year's EPS total after taxes is projected to be the same as my $7 share price buy suggestion in early 2021! Seeking Alpha Table - TORM plc, Analyst Estimates for 2023-24, Made February 9th, 2024 Final Thoughts I know many on Seeking Alpha have become so enamored with the Big Tech rise over the last 14 months, that no other stocks out of 5000+ individual listings are remotely on their radar. I do not think such a concentrated focus will work out well in the end for the vast majority of investors. It's important to diversify. It's important to look at and own steady businesses nobody is interested in. A selection like TORM, purchased at a super-low valuation right before a meaningful industry turn higher, is one formula for success, not preached in the financial media today during another Tech bubble/mania advance. The point of this article is the investment process requires you to process information and act independently of group thought at the moment. Contrarian logic, reviewing the cold hard math facts, and being willing to hold a stock with a minor paper loss over time can be a part of successful stock picking. Trend following and chasing hot names lacking honest/reasonable valuations can stroke your ego, but in no way, shape, or form guarantees oversized investment gains years into the future. I suppose I am preaching to the newer investors since 2010 who have not experienced a severe multi-year recession yet. My worry is an unusually large decline is about to hit the Big Tech favorites of the day later in 2024. A recession appearing soon is all but certain in mind, which may or may not affect tanker shipping rates for TORM, depending on geopolitical events around the Middle East, Russia, and China. If you want to purchase shares, I would wait for some sort of pullback. The technical chart pattern of momentum has weakened since November. Below, you can review how an oversold condition in the Average Direction Line has led to selloffs in the recent past (circled in red), while peaks in the Accumulation/Distribution Line and On Balance Volume during November (circled in green) could mean price is ready for a period of retracement. StockCharts.com - TORM plc, 16 Months of Daily Price & Volume, Dividend Adjusted, Author Reference Points Given heightened odds of recession and the extended valuation for ocean vessel companies focused on oil/gas transportation, I am moving my view of TORM to a Hold or Market Perform rating. I personally sold my long position in late 2022, in favor of smarter net-asset undervaluation plays. I have presented a variety of picks on Seeking Alpha over the last six months selling for less than tangible book value, including this article on PBF Energy (PBF) in November here.  Thanks for reading. Please consider this article a first step in your due diligence process. Consulting with a registered and experienced investment advisor is recommended before making any trade.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2411354258"}