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

To: Spekulatius who wrote (37326)	4/10/2010 1:57:52 AM
From: Spekulatius	Respond to of 78714

Let me take a stab at relative NAV valuation: GNK:2000M$ in asset book value for 2900 DWT fleet 9).68M$/DWT) ,average age: 7 years FREE: 270M$ asset value for 225 DWT fleet (1.2M$/DWT) ,weighted Age: 15 years FREE ships are much smaller than GNK, so they should trade at a premium to GNK on a $/DWT ratio price. however on the other hand, GNK ships age is only 1/2 that of FREE's fleet, which should make GNK's ships more valuable on a $/DWT ratio basis. Ok,that is just a lazy mans analysis of two fleets. both fleets have different characteristics but still, it seems to me that based on the data I am seeing that GNK looks better - they do have the better operating earnings too and despite their seemingly higher leverage based on stated book, less trouble with their lenders. My 10 min conclusion would be to prefer GNK over FREE. I would very much welcome other opinions or other ways co tackle the valuation angle.