17%-Plus Yield, 1.47X Coverage, Niche Industry Leader, No K-1

After this week's Stock-mageddon, when the market bid farewell to an 11-year old bull market in very dramatic fashion, you may be picking through the wreckage, looking for undervalued diamonds in the rough. This company yields 17.85% with strong trailing 1.47X distribution coverage. It's a leader in the tiny, but vital shuttle tanker industry. It's selling for 60% of book value. It issues a 1099 at tax time, no K-1.

One interesting place to look is in the tiny shuttle tanker industry, where one of our long term holdings, KNOT Offshore Partners LP (KNOP), is an industry leader. To give you an idea of the size of this tiny industry, there are only 69 vessels in the worldwide shuttle tanker fleet, which is less than 1% of the world's total shipping fleet. It may be a tiny industry, but shuttle tankers perform a vital service for offshore oil producers, which utilize them to get their product to the mainland.

Source: Seeking Alpha

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