I warned investors of the apparent overvaluation of Diana Containerships (DCIX) last month when the stock traded at $7 ($6.70 dividend-adj). In my article, I outlined my overall valuation approach and gave DCIX a price target of approximately $4.05. I emphasized that the dividend was not sustainable for the near future. In respect to market realities and the recent Q4-12 report, other analysts are also lowering their targets, albeit not as much, with a recent Jefferies note lowering the target to $7 (from $8). This article will offer commentary on the Q4-12 results, discuss the dividend impact of the new Sagitta charter, and provide target dates for interested investors.
Q4-12 Results & TCE
Only subscribers can access this article, which is part of the PRO research library covering 3,613 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: