Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] Investment Focus - The company has diversified its investments across various sectors including banking, telecommunications, logistics, and hotels, indicating a strategic approach to portfolio management [1] - The entry into the US market in 2020 reflects a growing interest in international investments, particularly in sectors like banks, hotels, and logistics [1] Market Trends - The popularity of insurance companies in the Philippines since 2014 suggests a shift in investment preferences among local investors, moving towards more diversified financial products [1] - The trend of using platforms like Seeking Alpha for analysis indicates a growing reliance on data-driven insights for investment decisions in both the ASEAN and US markets [1]

Core Viewpoint - Icon Energy Corp. has announced a 1-for-5 reverse stock split effective January 8, 2026, to enhance its appeal to investors and ensure compliance with Nasdaq listing standards [4][5]. Group 1: Reverse Stock Split Details - The reverse stock split will convert every 5 issued and outstanding common shares into 1 common share without changing the par value or the total number of shares authorized [3]. - Following the split, the number of outstanding common shares will decrease from 3,460,000 to approximately 692,000, adjusted for fractional shares [5]. - No fractional shares will be issued; instead, shareholders entitled to fractional shares will receive a cash payment based on the closing price on January 7, 2026 [6]. Group 2: Impact on Shareholders - The reverse stock split will not affect shareholders' ownership percentages, market capitalization, or voting rights [5]. - Shareholders holding shares in book-entry form or through a broker will see the impact reflected in their accounts without needing to take action [7]. Group 3: Company Background - Icon Energy Corp. is an international shipping company providing worldwide seaborne transportation services for dry bulk cargoes [8].

Core Viewpoint - TORM plc has completed the acquisition of shares from Oaktree Capital Management by Hafnia Limited, resulting in a change in the ownership structure and board composition of TORM [1][2]. Ownership Changes - Oaktree and its affiliates have reduced their ownership stake below one-third of the issued shares, leading to the extinguishment of the B-Director position [2][3]. - The threshold date for this change has been set as January 6, 2026, marking a significant shift in TORM's governance [2]. Board Composition - David Weinstein, the Deputy Chairman and Senior Independent Director, will leave the Board effective immediately due to the change in ownership, but will continue to serve as a Special Advisor [3]. - The Board expressed gratitude for Mr. Weinstein's contributions since 2015, highlighting his invaluable experience [3][4]. Share Structure - Following the redemption and cancellation of B- and C-shares, TORM's share capital will be USD 1,013,327.07, consisting of 101,332,707 A-shares [5][6]. - The voting rights will now consist of 101,332,707 A-shares and one B-share, with the C-share voting rights ceasing as of the threshold date [5].

Core Viewpoint - Ardmore Shipping Corporation (ASC) is given a buy rating due to a strong outlook for the product tanker market and favorable trading conditions for the company [1]. Group 1: Company Analysis - The company is currently trading at attractive levels, which enhances its investment appeal [1]. - The product tanker market is expected to perform well, contributing positively to ASC's financial prospects [1]. Group 2: Market Outlook - The overall outlook for the product tanker market is strong, indicating potential growth and profitability for companies operating in this sector [1].

Core Viewpoint - Ardmore Shipping Corporation (ASC) is given a buy rating due to a strong outlook for the product tanker market and favorable trading conditions for the company [1]. Group 1: Company Analysis - The company is positioned well in the product tanker market, which is expected to perform strongly [1]. - Ardmore Shipping Corporation is currently trading at attractive levels, enhancing its investment appeal [1]. Group 2: Market Outlook - The product tanker market is anticipated to experience growth, contributing positively to the company's performance [1].

Core Insights - U.S. equities finished 2025 positively, with the S&P 500 increasing approximately 16%, but the outlook is complicated due to geopolitical risks and policy uncertainties [2][3] Economic Environment - Geopolitical risks have resurfaced, particularly following President Trump's announcement of temporary U.S. control over Venezuela, raising concerns about stability in a significant oil-producing country [2] - Investors are preparing for policy uncertainties, including a Supreme Court ruling on tariffs and the appointment of a new Federal Reserve chair, which may lead to increased market volatility [3] Investment Strategy - In a climate of policy uncertainty and geopolitical risks, value investing is recommended for stability, focusing on companies with strong fundamentals, reasonable valuations, and durable cash flows [4] - Earnings yield is highlighted as a valuable metric for identifying undervalued stocks, calculated as annual earnings per share divided by market price, providing insight into the anticipated return on investment [6][7] Stock Screening Criteria - A screening criterion of an earnings yield greater than 10% is established, alongside estimated EPS growth for the next 12 months being greater than or equal to the S&P 500, and an average daily trading volume of at least 100,000 [9][10] - Stocks must also have a current price of $5 or more to qualify for consideration [12] Selected Stocks - Allied Gold Corporation (AAUC): Expected 2026 sales growth of 45% and earnings growth of 323%, with EPS estimates rising by $0.85 [13] - Alcoa Corp. (AA): Anticipated 2026 sales growth of 7% and earnings growth of 29%, with EPS estimates increasing by $1.03 [14] - Star Bulk Carriers (SBLK): Projected 2026 sales growth of 19% and earnings growth of 224%, with EPS estimates up by $0.61 [15] - PHINIA Inc. (PHIN): Expected 2026 sales growth of 2% and earnings growth of 15%, with EPS estimates rising by $0.52 [16]

Core Viewpoint - KNOT Offshore Partners LP's adjourned 2025 Annual Meeting of Limited Partners was held on January 5, 2026, but did not achieve the necessary quorum for decision-making [1]. Group 1: Meeting Details - A new record date and meeting date will be established due to the time elapsed since the record date of November 6, 2025, which was used to determine eligible unitholders for voting [2]. - Unitholders will receive notice of the rescheduled meeting and proxy materials based on the new record date once it is determined [2]. Group 2: Company Overview - KNOT Offshore Partners LP specializes in owning, operating, and acquiring shuttle tankers, primarily under long-term charters in offshore oil production areas, particularly in Brazil and the North Sea [3]. - The company is structured as a publicly traded master limited partnership but is classified as a corporation for U.S. federal income tax purposes, issuing Form 1099 to unitholders instead of Form K-1 [4]. - KNOT Offshore Partners LP's common units are traded on the New York Stock Exchange under the ticker symbol "KNOP" [4].

Core Viewpoint - Castor Maritime Inc. has signed a sale and leaseback agreement for the M/V Magic Perseus, a Kamsarmax bulk carrier, with a Japanese counterparty, expected to conclude in January 2026 [1]. Group 1: Transaction Details - The bareboat financing for the M/V Magic Perseus amounts to $15.6 million, with a duration of eleven years [2]. - The agreement includes a put option for the counterparty at the end of year eight and a purchase option for the company starting at the end of the second year of the bareboat charter period [2]. Group 2: Company Overview - Castor Maritime Inc. is a diversified global shipping and energy company involved in asset management, vessel ownership, technical and commercial ship management, and energy infrastructure projects [3]. - The company's fleet consists of 9 vessels with a total capacity of 0.6 million deadweight tons (dwt) [3]. - Castor is the majority shareholder of MPC Münchmeyer Petersen Capital AG, an asset manager listed in Frankfurt [3].

Group 1 - Scorpio Tankers Inc. has entered into agreements to time charter-out two LR2 product tankers, STI Rose and STI Alexis, for five years at a rate of $29,000 per vessel per day, expected to commence in Q1 2026 [1] - The company currently owns or leases 93 product tankers, including 37 LR2 tankers, with an average age of 9.8 years [2] - Scorpio Tankers has agreements to sell three LR2 product tankers, expected to close in Q1 2026, and has reached agreements for four MR newbuildings under construction with deliveries expected in 2026 and 2027 [2] Group 2 - The company has two VLCC newbuildings with deliveries expected in the second half of 2028 and two LR2 newbuildings with deliveries expected in Q3 2027 [2] - Additional information about the company can be found on its website [2]

Core Insights - The shipping sector is expected to see a shift from headwinds to tailwinds due to improving geopolitical conditions and trade negotiations, particularly between the US and China [21][22][26] - CMB.TECH is highlighted as a top pick for 2026, primarily focused on dry bulk shipping, which is anticipated to benefit from new mining operations and a shift in cargo routes [12][15][19] - The overall performance of shipping investments in 2025 yielded a 23% return year-to-date, outperforming broader market indices like the Russell and S&P 500 [6][7] Company and Industry Overview - Value Investor's Edge has grown significantly over the past decade, now comprising a team of 11 and over 700 active members, celebrating its 10-year anniversary [5][7] - The shipping market has shown resilience, with returns of 50% to 55% in previous years, although 2025 was considered a good but not excellent year [6][5] - The dry bulk sector has been underinvested in new capacity, which may lead to opportunities as demand increases from new mining projects, particularly in Guinea [15][16] Investment Strategies - The focus for 2026 will be on high-quality, defensive stocks with stronger balance sheets and larger backlogs, reflecting a cautious approach amid macroeconomic uncertainties [10][11] - Stock selection metrics will prioritize companies with favorable fair value estimates, projected earnings, and dividends, while avoiding those with risky management or balance sheets [33][34] - The importance of dividends is emphasized, advising caution against high-yield stocks that may not sustain payouts during market downturns [40][42] Market Outlook - The macroeconomic environment is expected to improve, with stronger GDP growth anticipated in both the US and Asia, countering earlier recession fears [26][28] - A thematic rotation from tech stocks to value-oriented sectors, including shipping, is seen as a potential positive trend for the industry [29][31] - The shipping sector is positioned to benefit from increased trade and improved economic conditions, with a focus on quality investments to navigate potential market volatility [32][46]