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Diana Shipping - Use The Recent Selloff To Participate In The $4.50 Tender Offer

Aug. 05, 2021 8:54 AM ETDiana Shipping Inc. (DSX)12 Comments
Henrik Alex profile picture
Henrik Alex


  • Initiating coverage on Diana Shipping, a leading Greece-based dry bulk shipper with decent financials employing a rather conservative chartering approach.
  • In contrast to peers, the company is focusing on medium- and long-term charters resulting in improved earnings visibility and better resilience during market downturns.
  • On the flipside, this strategy leaves the company disadvantaged in today's strong dry bulk market, but earnings are expected to catch up over time as weak legacy charters expire.
  • Investors should consider taking advantage of the recent selloff in shipping stocks and the company's current self-tender offer to initiate a position in the shares at an almost 50% discount to estimated net asset value.
  • With dry bulk market conditions likely to remain strong, I would expect the company to start paying a sizeable dividend in early 2022 at the latest point. Get long Diana Shipping with a medium-term price target of $6.

Großes Hochseefrachtschiff in Orange. Das trockene Frachtschiff gelangt mit einem Schlepper in den Hafen.
Viktor Ketal/iStock via Getty Images

Diana Shipping (DSX) is a leading, Greece-based dry bulk shipping company currently commanding a fleet of 36 dry bulk carriers with an average age of 10.4 years.

The company is employing a rather conservative

This article was written by

Henrik Alex profile picture
I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.Despite not being a native speaker, I always try to deliver high quality research at no charge to followers and the entire Seeking Alpha community.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of DSX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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