Well, the big news was released on Friday morning as the stock markets closed: Yes, GasLog Ltd (GLOP) has agreed with the independent directors of GasLog Partners (GLOP) to purchase the 69.8% of GLOP that GLOG already owns at $8.65 a share. the one.
This is a huge win for preferred GasLog Partner holders ((GLOP-A), (GLOP-B), and (GLOP-C)) which includes my company, Excelsior Capital Partners, and many of my clients. GasLog’s press release indicated that these favorites will continue to trade publicly, even after the deal closes. GasLog preferred the chain, GLOG-A, which has continued to be publicly traded for nearly two years since the company was taken private in June 2024 by a Blackstone-led consortium including GasLog founder Peter Livanos.
Publicly traded favorites in a privately held company without the expenses of a public company (deposits, exchange systems, etc.)? Yes please! So, combined with the resale and leaseback transaction that Tellurian (TELL) announced yesterday, a significant portion of ExCap’s portfolio has been significantly eliminated over the past 48 hours. I can’t lie…it feels good.
GLOP-B currently pays floating dividends (London Interbank Offered Rate, plus 5.839%), while GLOP-A, GLOP-C and preferences issued by parent GasLog (GLOG-A) currently pay fixed rates. So, the real danger lies in interest rates.
What will happen to interest rates on Friday morning, with equity markets closed, but treasury markets temporarily open to respond to Friday’s jobs report, which was broadly in line with expectations (236,000, 3.5%)? It is rising, but only slightly, with the 10-year US Treasury yield at 3.346% as of this writing. Stock market futures were also up, but only slightly, based on what was, in the spot analysis, a nil to the jobs report.
So, the big news comes from the micro, not the macro. Watch what companies do, not what ignorant people on financial TV shout into cameras. Job gains were the lowest since December 2020. The US economy is coming to a halt. Jamie Dimon thinks so… and so does Elon Musk, apparently.
Overnight, news hit the wires that Tesla (TSLA) on Thursday cut prices for all of its models in the United States for the fifth time this year. according to ReutersCumulative prices are now down 11% on the Model 3 and 20% on the Model Y. This is an Econ 101 pattern sign of waning demand for Tesla EVs. Honestly, in my 30 years of following the auto business, I’ve never seen such a “death by a thousand cuts” pricing strategy as the one used by Tesla.
Does that tell you that the American consumer is healthy? Oh God, no. So, just avoid it.
Be exposed to fixed income — floating rate, if you’re worried about higher rates, as I am, fixed if you’re not — and playing energy infrastructure all day long. Tellurian – Tellurian joint bond and (TELZ) – to produce LNG (once Driftwood LNG is complete in 2026 to use the natural gas Tellurian already produces in the Haynesville Shale) or GasLog (soon to include 14 vessels owned by GasLog Partners) via GLOP-A And GLOP-B and GLOP-C to play transport this LNG around the world.
It all makes sense. Does your portfolio make sense for the current state of the economy?
(Please note that due to factors including low market capitalization and/or insufficient public flotation, we consider some of these stocks to be small-cap stocks. You should be aware that these stocks are subject to greater risks than large-cap stocks, including greater volatility, and less liquidity. , and less information is publicly available, and that releases like this can have an impact on their stock prices.)
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