OceanFreight, Inc. (NASDAQ:OCNF)

On average this company has its ships chartered for the next 2 years with the expiration dates spread out from now to 2012. This should keep the income stream relatively steady. The company pays an excellent dividend, currently 17%. The average expiration should have the company renewing charters at a time that the economy is pulling out of its current malaise, which bodes well for its ability to increase rates in the future. The company has produced positive surprises on its earnings in 4 of the last 5 reports. Any positive surprise on the next report should boost its share price from the current dip.

This company is a money making machine.

They currently own 11 Drybulk and Tanker ships operating under long term leases of 2-3 years.

They pay a Dividend of 12% +

They have 14M shares outstanding which gives the stock a lot of volatility between Q earning releases, but this also offers the investor a perfect buying opportunity when the stock makes its predictable dips between Q releases on low daily volumn.

Oceanfreight, Inc. (OCNF) is a global marine transportation company based in Greece that ships drybulk and crude cargoes. The company acquired its first vessel in June 2007 and now owns a fleet of 11 vessels, including 1 Capesize bulk carrier, 8 Panamax bulk carriers, 1 Aframax tanker and 1 Suezmax tanker with a total carrying capacity of approximately 978,889 million deadweight tons.

Oceanfreight Surprises on First Quarter Estimates

On May 20, OCNF reported first quarter estimates that beat Wall Street estimates by 33.33%. The company reported net income of $6.4 million, or 44 cents per share, compared with net income of $6.4 million, or 44 cents per share, in the fourth quarter of 2007.

The period was affected by a non-cash charge of $5.3 million and a one-time cash charge of $1.1 million. Excluding those items, net income was $12.8 million, or 88 cents per share. Analysts expected 66 cents per share for the quarter.

Gross revenue was $38.4 million in the first quarter, compared to $23.2 million in the fourth-quarter 2007.

It was the first quarter since the company started acquiring its vessels last June that OCNF had all eleven of its ships operational. Oceanfreight has also been locking in period contracts.

"We achieved fleet utilization close to 100% which is a testament to the operational capability and efficiency of our ship managers. With the time charter of the Olinda all of our vessels will be employed on period contracts with an average remaining duration of 2.2 years," said Anthony Kandylidis, the Company's President and Chief Executive Officer.

"Our time charter coverage presently stands at about 95% and 87% of the total vessel operating days for the calendar year 2008 and 2009 respectively," he said.

The company's states that its strategy is to deliver consistent shareholder returns. To that effect, OCNF recently announced, for the second quarter in a row, a quarterly dividend of 77 cents per share. The current dividend yield is 12.60%.

love the materials, shipping play...RIO and DRYS...or RTP and TBSI or EXM...They need to around the world and these vessels are our only option I love this one

It's book value is as a matter of fact and it pays
great dividends.

SECTOR SHORTAGE OF SHIPS & PORTS

GROWTH OF ASIA AND CHINA

LARGE AND SUSTAINABLE DIVIDEND

COMPANY GROWTH & NET PROFIT

Bulk shipping to go up given the huge growth in china and india. This stock has been pushed down for a while, i think it will be on the rise again soon. Pays great Dividends, own this one myself.

You can phase out alot of company's services, but not this one, not for a long time. Their financials are great, and I think they have good leadership at the big spinny pirate ship wheel

dryship

dry bulk shipping

Add this shipping stock on the dip down to the 50 day MA.

Just like VLCFF, I think there's a good play here.

OCNF will bring on their 8th vessel in early November whose charter is already arranged. The CFO of this company was previously with General Maritime and appears to have a very aggressive business model. In a recent interview, the CFO stated that the company is looking at expanding in other areas such as acquiring container vessels as well as wet ones. He also discussed plans to increase the dividend in the near future. This will be a good long-term hold and there is a good chance share price will double within the next year.

Given dry bulk shipping rates, i think this stock will continue to perform. Bought back before the dip, held in there hoping for a bounce back. I've been happy the past few weeks with the performance, hopefully this will continue. Jim Cramer felt it would go to 35$, i'm going hold and see what happens!

1. OCNF is operating with less than half its anticipated fleet so far.

2. They are 100% contracted out for 2007, 88% for 2008 and 60% for 2009.

3. They're announcing earnings along with Q2 dividend on 7/25. They are expected to have a yield of 9.2%.

4. Still 50+% upside up to about $35 if their dividend yields are to drop to the industry standard of 5.9%.

Big yields on the horizon will push this stock through the roof.

New player with ground floor opportunity on future dividends.