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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: anializer who wrote (28554)	10/17/2007 2:35:16 PM
From: Jurgis Bekepuris	Respond to of 78753

OSG looks really cheap on P/Book and even on ROE or P/E. Unfortunately it has been always valued at very low PEs. And the negative thesis in all research reports is that the shipping does not depend on oil price, but rather on the volume of oil. Which - if you agree with peak oil - will not rise, while the overall tanker fleet is expected to grow at least for the next year. In all, unlike oil industry where I think "this time is different", in oil shipping industry I think "this time is not different" and we are on the top of the cycle. Unless someone suggests how and where OSG can profitably deploy its overcapacity of ships, I would be reluctant to buy it here. It does look interesting and cheap though. ;)