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DHT: Why Can None Of The Analysts Count.

|Includes:DHT Holdings, Inc. (DHT)

I Feel that there has been too much confusion around earnings due to the reverse stock split that took place earlier this month.

In fact, I have yet to find a quoting service of broker who is even reporting the share count of DHT accurately.

More importantly EPS $0.02 calculated on pre reverse split share count of 140 million shares.
Consensus Estimate $0.45 calculated on 7.9 million shares and not taking into account the preferred conversion.

Actual share count 11.3 million, SO;

($0.45* 7.9)/11.3 = $0.3146
-minus
($0.02* 140)/11.3 = $0.2477

= a $0.0669 miss not a $0.43 miss as has been being reported. Not bad considering they also cut debt by 50 mill and have no debt repayments till Q4 2013. They also have a healthy dividend 15% at current share price, which they re affirmed through the end of they fiscal year and raised cash leaving them with 71 million on the books.

To address the lighter revenues, I would say they were in line given the company was operating 2 fewer vessels. Management decided to scrap 2 older Aframax's and is looking to replace them with vlcc's. Management stated that they feel they are in a good buying position and due to the state of the current market were positioned to take advantage of any attractive opportunities.

The current Price is about $6. Based off Cash on hand, fleet value etc, DHT has a liquidation value of $7.63 accounting for debt and selling all ships into a depressed scrap market.

My 1y price target is $19.5 - $22. The numbers tell me that DHT will be one of the few survivors in what is currently a very tough sector.

NOTE: I recommend reading the sec fillings as I have not found a single broker or quote site that has been bothered to quote DHT's fiscal information properly. e.g Most reported 0.02 eps on 5 - 7 million outstanding shares, and are about 30 - 60 million light on Market cap. As they also have not updated cash flows or balance sheets to reflect the Q2 2012 filling, reading the entire report is the only way to accurately asses the stock. It is also noteworthy that analysts complimented management on the handling of the current climate.

I am obviously long DHT, which is why I bothered to check the figures.

Disclosure: I am long DHT.

Stocks: DHT