Boston, MA 03/19/2014 (wallstreetpr) – Shares of Knightsbridge Tankers Limited (NASDAQ:VLCCF) closed $14.32, up 0.49 percent in the previous session. The shares have always been up of late, especially after the company announced vessels acquisition deal on March 10. Since that announcement, the shares are up more than 25 percent.
The shares traded in the brackets of $6.10 low and $14.85 high in the last one-year. Many investors are now acquiring the stock when it has hit the range of $14, but investors who read the upcoming benefits earlier on got the stock at much cheaper price around $5 – $6. But even with the stock significantly up from its lowest mark in a year or so, all is not lost on those who would wish to acquire the stock at the current price. The surge that has already been witnessed in the stock is far too small compared with the upside potential on the stock price. In other words, there is till more room for the stock to rise even when significant rise has been already achieved.
Knightsbridge Tankers Limited (NASDAQ:VLCCF) announced that it was adding six more Capesize carriers to its fleet. The management went on further to say that they hope to add 15 more new vessels by 2015 and even more in the coming years.
Looking at the deal, the company is getting the new vessels at very attractive prices – cheaper than what its rivals paid for their acquisitions. The company is also adding new carriers to its fleet at a time when those purchased by its rivals are aging.
At this juncture, it is not hard to see that the management behind this company is wonderful. Their moves are not hurried to match rivals, but very strategic.
The long-term prospects at Knightsbridge Tankers Limited (NASDAQ:VLCCF) are intriguing to say the least. We already known that going by the above actions, the company has a conservative and shrewd management team. With such management in place, headache is reduced. The company has attractive liquidity position and the long-term demand for shipping services make the stock an attractive add-on to the long-term portfolio.