TORM (symbol TRMD)

[dn4911]

THis is a play on both the product (clean) tanker market and dry bulk. I like the product tankers for a couple reasons. First the Venezuela threat, second the difficulty of refinery expansion in the US. We are talking about transport of refined products. THe stock is down and has a great dividend. ONly pays dividends once a year normally.

TORM is one of the world's leading carriers of refined oil products as well as being a significant participant in the dry bulk market. The Company operates a combined fleet of more than 130 modern vessels, principally through a pooling cooperation with other respected shipping companies who share TORM's commitment to safety, environmental responsibility and customer service.

TORM was founded in 1889. The Company conducts business worldwide and is headquartered in Copenhagen, Denmark. TORM's shares are listed on the Copenhagen Stock Exchange (ticker TORM) as well as on the NASDAQ (ticker TRMD). http://www.torm.com

Recently Torm announced

it has acquired a 50% equity stake in the shipping company FR8 Holdings Pte. Ltd. ("FR8") from FR8 Limited, a subsidiary of the international oil trader Projector. The FR8 Group has offices in Singapore, London and Veracruz in Mexico and employs about 30 staff worldwide. Projector will continue to own its equity interest in FR8.

The purchase price for the 50% equity stake in FR8 amounts to USD 125 million which reflects the current value of similar shipping companies.

In accordance with TORM's long-term strategy, "Greater Earning Power", the acquisition of FR8 will provide TORM's fleet with access to oil cargoes from Projector and FR8. In addition, the acquisition will enhance TORM's insight into the demand parameters influencing the product tanker market.

The FR8 Group controls 25 vessels including 3 LR2 new buildings for delivery in 2008. The FR8 Group owns 6 modern product tankers, comprising 4 MR and 2 LR1 product tankers. In addition, the FR8 Group has long-term charters on 3 LR2, 4 LR1 and 11 MR product tankers, with purchase options on 3 of these vessels. The FR8 Group also commercially manages 1 LR2 vessel. see FR8