DHT Maritime, Inc. (DHT)

TSIF (98.80) Submitted: 11/2/2009 8:15:51 PM : Start Price: $3.38 DHT Score: +16.07

DHT Maritime, INC is one of the few shippers who has given back everything from it's rebound off the bottom earlier in the year and has been setting NEW 52 week lows. With only 9 tankers, it's capacity and growth are currently limited, but having incorporated in 2005 it doesn't have the debt/history that some of it's brethern do. It did incorporate, however, in the boom time and probably overpaid for it's assets. P/B is sub-1 and although recent quarters show a continuous decline in earnings and profit is now very small, it does have positive margins and good cash flow. Cutting the dividend completely pulled the plug the rest of the way out of its stock price as impatient investors decided the risk/reward had slide out of balance. Overall, I like it's cash balance, positive, (though small earnings), and upward potential if the market improves. All 9 of it's ships are out on long term charters through Q2 '12, so the bottom should be close. The profit sharing is the part that took the hit. Some single hull tankers are being phased out and companies seeking ships to charter have a strong perference for the double hulls.