OceanFreight, Inc. (OCNF)

This company needs to get their act together and when they do this stock will be back and in a big way. You will not see this stock any lower than 1.30. There is alot of upside/reward for holding on to this one. Panic selling, fundamentals are still there for long term. Big companies are buying up shares of this company.

OceanFreight, Inc is a rapidly growing shipping company which owns over a dozen ships operating on multi-year fixed contracts with both dry bulk and energy tankers. The company has been buying new ships - expanding and upgrading their fleet - all year, recently had shareholders approve an increase in authorized shares to support continued growth, and I think - but I'm not sure anyone is exactly sure - will bring back the dividend with their earnings announcement scheduled for next Wed, the first Wed in Aug 2009.

I'm torn on this one... I own in real life at a cost basis of around 1.46.

I believe there is alot of potential here, and I like the dividend history.

On the flip side I also am worried that management might get too aggressive. For those that don't know the CEO and major holders are all closely tied to George Economou (sp?) CEO of DryShips. Some articles I have read paint him as having alot of contempt for shareholders. Couple that with the recent approval of authorization of issuance of a boatload (pun intended) of new shares and I think the risk of abuse/dilution to common shareholders is a very real possibility.

In the end, we've got a company that has been making money. Is aggressive in pursuing growth. And has major shareholders at the helm. That's more than I can say for most Fortune 500 companies where the CEO barely knows how his bread is buttered. So I'm sticking with this one for now.

No real science here, but if you really want some numbers have a look at book value as it relates to the share price.

Any freight company be it land, sea or air is going to be depressed in terms of sales and revenue during a period of economic slowdown. Sea is still the most cost effective way to move drybulk material and as the economy recovers and manufacturing picks up there will be an increased demand in the need for transportation via sea freight, and it seems that Ocean Freight used the slowdown as an opportunity to get themselves ready for that time.

Not sure about their original 20 dollar price, but with the volume behind it and the current share price its certainly worth a look.

I dont think you can go wrong once the freight starts moving again.

Time to buy back in?

This is a very good value play this stock has a book value of above 10 a share. Technically it is due for a very nice bounce. I would not be surprised to see it above 5 in 3 months.

I don't lke the high debt load, but other caps players assure me that the company has longterm contracts, which should enable it to secure refinancings as needed. This company trades at 0.15 times book value. Assuming thngs go well, it should be a 5 bagger, which is, no doubt, the reason that Captain5Bagger (rating 99.95) picked it today 06/09/09.

1. book value 13.32 2. Small company with huge oppertunity for growth. 3. Awesome dividend in the past.

perfect time to take a ride on the freighter

bulk shipping carriers are oversold, once the economy rebounds these stocks will shine, provided they survive

This company is fairly young in its publicly traded life, but could show to be a very timely opportunity for investors to discover the potential that this company has.

Strengths:
13.32 book value
Long term contracts (some of which extend until 2016)
80% of 2009 backlogged (as well as almost 50% in 2010)
13% insider ownership
1.52 EPS (P/E of 1.16)

Weakness:
300 Million in Debt (160 Million Market Cap)

Bottom Line:
This company has a lot of potential and is trading considerably below their current book value of 13.32 per share. This makes the current price of 1.77 look incredibly cheap, but the only downside I notice is that the company is a little too leveraged for my taste. When I looked into that, I realized that the reason they are over leveraged is due to their capital expenditures on expanding their shipping fleet over the last year or two. That combined with the fact that they already have a backlog of almost 2 years makes me think that their rising debt won't last too much longer. Their expansion is jusified by their backlog, but if their debt keeps rising over the years then the potential upside of expansion might look a little watered down. I don't believe (after reading their annual report) that they will continue this heavy debt load in years to come and that they will push forward into even greater expansion without the use of heavy debt, but rather cash they will have generated internally. This company is currently undervalued and should be more around the $15 mark, but could be considerably more than that based on which direction the company takes. It needs to cut down its debt in coming years, or make enough money to justify the debt load.

shipping prices rising

Poised to pop in a rebound. Small cap that could explode.

Shaky debt situation, but poised for a surge once the recession ends

Great amount of cash and long term contracts.

Badly oversold. This shipping company will weather the storm.

Risky, but may jump with BDI

The stock should start moving with the rest of the shippers.