SHIP-US (BUY, TP 2.9) 3Q17 Review: Weak Quarter, But Investment Case Intact. TP Upgraded
Long/Short Equity, shipping, Value
Contributor Since 2013
*UPDATE* Gersemi Research has been acquired by the Cleaves group
Gersemi Research is an independent investment and equity research platform with primary focus on shipping and oil services. We have a proven track-record of significantly and consistently outperforming consensus and generating returns above the SP500 over many years
Mr. Joakim Hannisdahl, our Head of Research, has several years of experience as a Shipping Analyst on equities at Nordea Markets and Fearnley Securities. He holds a Master of Commerce (extension) with specializations both in Financial Econometrics and Funds Management (UNSW), in addition to a Bachelor of Social Sciences with specializations in both Economics and International Relations (NTNU). He is currently investing private funds, among other engagements.
Please visit http://gersemiresearch.com to gain direct and real-time access to our research.
Full report available for free at http://gersemiresearch.com/2017/11/08/ship-us-buy-tp-2-9-3q17-review/
Highlights:
- TCE at USD 9.2k/d vs our forecast of 13.5k/d (100% utilization basis).
- Opex at USD 5.2k/d (+13% q/q) vs our forecast of USD 4.6k/d.
- Above weakness somewhat mitigated by G&A at USD 1.3m vs our USD 1.6m forecast.
- EPS adj. -0.13 vs our forecast of +0.02, after adjusting for a USD 11.4m one-off related to debt repayment
- TP upgraded to USD 2.9/sh (from 2.7)
Disclosure: I am/we are long SHIP.