DHT Maritime, Inc. (NYSE:DHT)

CAPS Rating: 3 out of 5

The Company is engaged in the ownership and operation of a fleet of double-hull tankers.

Recs

1
Player Avatar TSIF (99.96) Submitted: 11/7/2011 5:07:56 PM : Outperform Start Price: $13.64 DHT Score: -13.73

Bottom fishing in Davy Jones locker.... Double Hulled tankers should sink that fast!!!

DHT Maritime, Inc, (short for Double Hulled Tankers) ships were out on hire 99.7% of the time last quarter. The small fleet, however is clearly operating on very low margin in these difficult times. The theory is that double hulled tankers reduce liability and are required in some areas so should command a bit more on the rate scale. In reality, it's a tough market with a surplus of ships. DHT Maritime did post a loss last quarter, but it was on writedown of ship value. It paid sufficient cash to keep the covent percent down on it's loans. Overall it did post a small profit of 0.05 EPS. It pays a dividend of $0.03 currently per quarter, down from $0.10 per quarter last quarter which has clearly affected the stock price. The 0.03 is still an 8% dividend at today's share price.

I don't consider DHT substantially undervalued at $1.18 where I entered today, but the profit, while small gives it some hope of some upside. The drop to $1.13 was partially because it went ex-dividend and if it can hold the $0.03 dividend it might drift back up each quarter between dividends.

Featured Broker Partners


Advertisement