Teekay (NYSE:TK). The Teekay Group, by means of Teekay LNG and the parent company, Teekay Corp, is one of our most significant investments. This investment has a low cor-relation with the behaviour of the market as it depends on specific actions of the Group. The reasons that made it share price dropped (a cut in dividend to finance its ambi-tious growth plan) will shortly be the reasons for the market to again appreciate its qualities. Teekay LNG is the main source of potential for them both and has per-fectly implemented its growth plan, which involves long-term contracts for its LNG transport ships. The exe-cution risk is now very low and it is interesting that the market appears to be in agreement regarding the genera-tion of the expected operating cash flow at Teekay LNG, but this is not yet being reflected in the share price. Now we are waiting for the plan of the company so as to reini-tiate the distribution of cash while they reduce their bor-rowing. In any case the accumulation of value will be evident and we hope that this will be reflected by the market, this time sooner rather than later.
From Francisco Garcia Parames' Cobas Asset Management third-quarter 2018 shareholder letter.
