Ever since Walter's post, I've been sorting thru the shipping stocks and reviewing the industry. Walter brought up a lot of good points in general about the industry, and across the board I find a great deal of undervaluation in the stocks. While that doesn't remove the dangers from investing in the sector, I still find what one might deem timely plays here and there. OSG to me looks like the highest quality in the sector, clearly undervalued on a balance sheet examination basis, having suffered its worst year in 2009 so I ask myself, do stocks bottom against a backdrop of bad news or good news. Do they peak against the best news and best earnings ever? In general I agree that stocks often bottom when the news is bleakest and the market begins to anticipate less bad news and some improvement going forward.
While OSG is undervalued, when things improve, if they improve, the undervaluation will shrink. This is not a recommendation to buy, although I have a tad. For the more venturesome among us, I think FREE could be a timely speculation. With a tangible book value of $4.62 a share, and recent PR about short term charters at increased prices, it has potential for some percentage gains. Below is the link where one can find the 4th qtr and 2009 full report by navigating their site. Below that is the PR from April 1.
More interesting to me, below that is the chart where the indicators in the lower windows look poised. Click on the actual chart when it comes up to clarify the view.
freeseas.gr
finance.yahoo.com
i40.tinypic.com |
