Anyone else think this is a great long term investment thats ready to fly anyday now? Revenue has tripled every year, They consistently show profit, P/E is 80% lower than industry average. Net assets continuously increasing very well. These guys are aquiring ships at a breakneck speed. And now that they are not going to pay dividends anymore I think that might give this stock room to shoot to the stars. I just picked up a few thousand shares to hold onto.
Ahh but you gotta look beneath the surface. The company has actually been selling off its ships and moving toward leasing instead. That's where the special dividend came from. Not a smart move, why open urself up to huge lease increases. That's why it's so dirt cheap and by 52 week lows. It seems like it's going to slowly dwindle away. I sense the exec management is going to jump ship to a competitor, maybe that's why they are selling off assets and paying out cash. At the same time, it is dirt cheap by any standard and the company makes money. What you have to ask is what will make this stock move because unless you plan to really buy up the company, there is no gain in holding a bargain whose market price does not really move. Take a look at FRO, TNP and TK, their P/E is rock bottom also.
SFL is probably a better bet in the sector because their dividend is pretty solid. If rates can average 25k then they should be fine and currently rates are averaging in the 50 to 60k range. Probably not as much potential for upside on the quick but you shouldn't lose anything from this point, while dividend yield reduction is highly improbable. I've been hosed on the TOPT before and am not really a big fan of how ownership seems to have just cashed out considering the IPO price and where it's currently resting. *edited for spelling.
I believe they are putting together the cash to buyout another company...DRYS perhaps. DRYS stock is at its 52 week low, down about 45% YTD. It would be a nice little bargin basement stock to pick up for TOPT
As a diehard technician I can't comment on the fundamentals, but what I can say is the chart doesn't look too healthy. I wouldn't go long unless they get over 9.00. JMHO.