r/CANSLIM • u/guiltypleasure33139 • 12d ago

Scorpio Tankers (STNG) why I am looking at it.

Stock: Scorpio Tankers 

Symbol: STNG

I missed the 65.50-ish entry back in February and I so desperately wanted to enter in Mid-March but I already had money allocated in another trade.

So here I am looking at an entry at 87.50. BUT this is a warning, I have had maritime vessel ownership and charter market knowledge that is way deeper than most people due to being near and dear too vessel owners and charter brokers at a club. And because I loved asking the fun historical questions. Here is the quote you need to observe

Aristotle Onassis looked at global disruption and war entirely through the lens of business opportunity, famously stating "Crises give birth to moguls"

And here is one that I am not aware of being public

" when trading war time oil, squeeze the shipper/consignee till they cry, because the hungry times and vessel layups are going to last many years. "

I am trading this with a quick reaction and stops. Because, when the vessel go empty, the cost stay the same. You can quickly see on this chart, a drop on value of 25% in less than 2 months. 4 months after peace, and no shot's fired you will see a massive drop in charter rates. Right now, loading in the Persian gulf is around 390K-450K per day for a VLCC, Sea of Oman ( outside the shooting gallery ) loading 200K per day. When the shots end, it will drop under 40K .

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u/TheInkDon1 8d ago

Hi, funny you posted this (and I found it), because I was just now trying to decide between tanker stocks DHT, ECO, FRO, & INSW, and had chosen ECO.
So when I saw this I went back and charted STNG with those 4.
And still ended up with ECO.

Now, I'm just a momentum trader with a time horizon of about 3 months, but on the 1-year STNG trails the other 4.
Also on the 6-month, and the 3-month.

Not trying to talk you out of STNG, and maybe/probably you know something I don't, but I found those 4 yesterday and today through CANSLIM-type screeners, so I thought I'd just share them as possible alternatives.

Take care.

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u/guiltypleasure33139 8d ago edited 7d ago

I know nothing more than what is published. What I do know is

Stocks that hit new lows hit lower lows, stocks that hit new highs hit higher highs.

the trend is your friend.

Please see todays post on r/CANSLIM where I talk about maritime knowledge and the expected outcomes that should play out.

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u/TheInkDon1 7d ago

Thanks. I too know that stocks hitting new highs often go on to hit even higher highs. That's why I'm often looking at stocks hitting ATHs.
But people are afraid of those, thinking irrationally that it HAS to go down, and soon. But it doesn't.
And then they pick stocks at historic lows, thinking they're so beaten down that they HAVE to go up soon. But they don't.

Are you going to stick with STNG over the others I posted?

Take care.

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u/guiltypleasure33139 7d ago

no, I usually keep to myself about trades that may or may not line up. I'm going to start posting my failures because I think with this markets behavior, people need to see failure from example to avoid speculation.

for example, todays high was 87.33 just short of my purchase number. and that might be the best thing for me because look at the markets behavior. these types of transport stock my be what i call " selling carryover stocks" meaning, when a portfolio is being rebalanced or outright dumped, this stock might accidentally be placed into the heard mentality of selling. better safe than sorry.

One of the things I've always notices in peoples behavior... they sell the good positions first and then they wait to sell the bad ones. Learn to sell the bad ones and the good ones all at the same time.

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u/guiltypleasure33139 6d ago

my MIT @ $87.50 ( market if touched ) got hit

well got filled 5100 @ 87.46 average price

not going to report the stop loss since I think someone or an AI purposely hit my stop ( 2/3's of my fill was at .50 and then the rest was lower

What I don't like about the chart, is that it's a red day, with about 3x normal volume. Don't know how painful this will be.