In my previous posting (http://mycroeconomics.blogspot.com/2009/07/fsl-whats-in-their-mind.html), I concluded that cutting the payout ratio will depress the unit price while do no good to the company.
Now let's look at what happen.
The general market sentiment since the announcement (21/Jul) has been on the uptrend. In fact, FSL tracks ST pretty well few days before the announcement, and even 4 days after that. Then on 25/Jul, we observed an expected drop upon XD. However, after that we see a clear decoupling, and it goes against the general trend.
This is interesting as it shows that the market need time to digest information, or in other words it is not 100% efficiency. Were the investors blinded by the immediate distribution?
Now the other shipping trust Rickmers is going to announce its results next week. If it can sustain its distribution, will it encourage investors to switch boat? If it cut further its distribution, will it damage further the sentiment on shipping trust? Will there be storm ahead?
Now let's look at what happen.
The general market sentiment since the announcement (21/Jul) has been on the uptrend. In fact, FSL tracks ST pretty well few days before the announcement, and even 4 days after that. Then on 25/Jul, we observed an expected drop upon XD. However, after that we see a clear decoupling, and it goes against the general trend.
This is interesting as it shows that the market need time to digest information, or in other words it is not 100% efficiency. Were the investors blinded by the immediate distribution?
Now the other shipping trust Rickmers is going to announce its results next week. If it can sustain its distribution, will it encourage investors to switch boat? If it cut further its distribution, will it damage further the sentiment on shipping trust? Will there be storm ahead?
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