 Good day, fellow investors. Yesterday we discussed the shipping sector and as promised today I'll give you a shipping stock, a very, very interesting stock. A stock that would make you invested alongside Norwegian shipping billionaire Magnate Friedrichsen. He has about 11 billion so he has been investing only in shipping for the past 50 years. More areas from GLNG, tankers, marine harvests, the salmon business, etc. So he is diversified so keep that in mind before investing in a stock like Flex and LNG. But Flex LNG is also an interesting stock upside of LNG trading around the world more demand for gas. And it might be very, very interesting because the upside is really, really high and you'll see that. But there is always, as it is shipping, the risks of downside because the situation in shipping can become very, very terrible for some moments in time. So let's start with the analysis. So we can learn more about the company in this 3-minute video and it will really explain what the company is doing, what is the upside, what's the downside, what are the risks and what is the investment thesis. In the 20th century oil replaced coal as the main energy source and since the beginning of the 2000s, there's been a gradual transition towards natural gas, the cleanest burning and most environmentally sustainable fossil fuel there is. According to BP, natural gas will overtake both oil and coal as the biggest fossil fuel within 2030 due to its clean properties and features. In recent years, LNG supply has increased rapidly and has more than doubled the last 10 years. A further increase is expected and in 2050 the world's energy demand is estimated to be twice as big as in 2000. That means even greater demand for LNG. According to Bloomberg estimates, close to 100 million new tons will be sanctioned in 2019, which is 25% of the existing capacity in just one year. The process of natural gas production begins onshore where the gas passes through factory pipes and is cooled to negative 162 degrees. This decreases the volume of the gas 600 times and makes it easier to transport by ship. When it arrives at the import terminals, the LNG goes through a re-gasification process before it is sent through pipelines to the end consumers for heating and electricity. Today, Qatar is the largest exporter of LNG, while Japan is the biggest importer. Going forward, the majority of LNG supply growth will come from the US, while there will be a gradual increase in demand from Asian countries, meaning longer sailing distances and need for more vessels. There has been a revolution within LNG carriers over the last 15 years. Flex LNG's efficient vessels use 50% less fuel and have 30% larger cargo capacity than the steam generation. This provides customers with the lowest transportation cost in the industry. Therefore, Flex LNG is able to respond quickly to current market needs and effectively deliver large LNG supplies to customers. Right Ships Flex LNG's fleet consists entirely of 5th generation LNG carriers with a modern two-stroke propulsion system, providing a substantial reduction in transportation costs. Right Time The LNG shipping market has rebalanced with higher charter rates and utilization levels, as well as increased interest for longer term contracts. Right Market The LNG shipping market has very strong long-term fundamentals due to increased demand for LNG, emissions focus and commodization of LNG, resulting in more trading. Right Sponsor Co-invest with the most successful shipping investor around, with evidence track record from Frontline, Golden Ocean and Ship Finance International. As I said, the owner of the company is Jevron Trading, indirectly controlled by trust established by the billionaire John Fredrickson for the benefit of his family. He owns a lot of ships across the world, Golar LNG Frontline, etc. So he really knows what he is doing and he is betting on the company. And a good quote for him that explains how shipping is. So he says, I've been in the market in tankers for 50 years and I like it. He says, for me, it's still fun. It is the only sector where you can earn back a year's losses in the space of a week. So this is shipping. You lose, lose, lose, but then you make it big. Is it time that you make it big with LNG? We will see now. So this company is a company set up 10 years ago to really take advantage of the growth in the LNG liquefied natural gas shipped across the world. So they made the private placement 2018 for 300 million at the double the current valuation. So you can invest now practically half the price that John Fredrickson and his peers invested just 10 months, 12 months ago. When it comes to risks, the risks are very well explained in the annual report. There are many risks, operational, building ships, market risk, credit risk, interest rate. So over supply of vessels, if the LNG market doesn't grow as required, attractive funding, if they can finance all those boats that they are built, they are now building still eight boats to have to be built. Five vessels have been built and that's always a risk. Even if for now they have found excellent financing terms. Discount on equity is not that high, but significant. 529 million market capitalization on 827 million of equity. So that's a very good number of shares, outstanding 54 million. The equity comes from the owner's investments where they pay shipyards to build those ships. So it's not like something without a margin of safety we can say, but still with shipping you never know. Depends on the spot rates, vessel values depend on the rates they can get when shipping. At the end of 2018, there was 500 million in debt, but more debt was issued recently and will be probably issued to continue with the financing of those ships. The biggest risk is if things are bad temporarily in the environment, the debt covenants get breached, the lenders will ask for more money and that's usually when a shipping company doesn't have more money. So there is always the risk that the owners recapitalize the company and dilute you at the worst time in history. However, on FLNG there is a lot of potential on the company. For example, at current spot prices around 50,000 or lower than 50,000 per day, what the ship earns, the company breaks even. However, if spot prices reach 200,000 dollars per day, which happened I think at the moment in 2018, each of FLNG's ships will make about 54 million dollars per year in free cash flows. Multiply that by 13 and you can see that the company can make more than the current market capitalization in just one year. This is investing in shipping. So zero making money now, but if there is a crunch and if there is a lot of demand for shipping liquefied gas across the world, then this company can make more than what? 700, 800 million dollars in one year. Repeat, the market capitalization is crossed close to 500 million and that is free cash flow after everything. This is the upside and this is why Friedrichsen is invested in shipping. As you can see, rates have been also higher than 200,000 dollars for a moment, September, November, and you never know when those will spike again. The thesis from FlexRNG is that there is higher demand for LNG, higher supply of LNG coming online too with all the projects in the United States and across the world and there will be a high need for LNG vessels to ship that LNG across the world and there won't be enough probably in 2020, 2021, 2022. So we might see that spike of let's say 500 million that would probably increase the stock price 5 or 10 times. The risk is always what if those rates stay below 50,000 then this company will probably never make any good money. That is the risk reward. See how it fits your portfolio. To conclude, FlexRNG is really a risky bet but you have to see how does that fit your portfolio whether you can sleep well with having such a stock in a portfolio where the potential for 50% loss and then a takeover 100% loss is really there but there is also potential for 5x upside over the next year to 5 years. So that's something you have to see. Okay, am I ready to do those things in my life? Am I ready to spice up my portfolio? And then see, okay, what can happen? Over the past 10 years it has been a disaster for shipping so you have to think, okay, I might be in it over the next 5-10 years try more different ways and on one of those you will make 5x your money. As would Friedrichsen say, shipping is an industry where you can make up for years of losses in just one week. That's how it works, that's how those spot rates explode and ships suddenly make tons of money for a period of time. That's investing in shipping, it's a crazy environment but see how this fits your portfolio. So check my stock market research platform to see whether it is something for you. There is a 28 money back guarantee so if it's not something for you, simply ask your money back. If it is something for you, you have me working for you 50 hours a week for less than a dollar a day. Thank you and I'll see you in the next video.