I have been an avid Diana Containerships (DCIX) bear since my sell call on February 1st, 2013. Throughout the year I have critiqued their unsustainable dividend, poorly structured business model, and pending dilution risks. Throughout the year, I have remained bearish and have provided frequent updates on Seeking Alpha.
I now believe that DCIX is an attractive investment for three key reasons-there is substantial long-term upside if the containership market improves, most of the previously covered business model weaknesses are now fully priced-in (at $3.52), and DCIX is relatively uncorrelated to the S&P 500 (which I believe to be approaching frothy levels). My current price target, thoroughly explained below, is $5.17, representing upside of 47% to current...
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