5-Star Stocks Poised to Pop: DHT Maritime

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, tanker operator DHT Maritime (NYSE: DHT) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at DHT's business and see what CAPS investors are saying about the stock right now.

DHT facts

Headquarters

St. Helier, Channel Islands

Market Cap

$169 million

Industry

Shipping

Trailing-12-Month Revenue

$117.9 million

Management

CEO Ole Diesen

CFO Eirik Uboe

Return on Equity (Average, Past 3 Years)

25.3%

Cash/Debt

$49.9 million / $292.9 million

Competitors

Frontline (NYSE: FRO)

Teekay (NYSE: TK)

CAPS Members Bullish on DHT Also Bullish on

General Electric (NYSE: GE)

Diana Shipping (NYSE: DSX)

CAPS Members Bearish on SPAR Also Bearish on

General Maritime (NYSE: GMR)

Goldman Sachs (NYSE: GS)

Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and Motley Fool CAPS.

On CAPS, 95.2% of the 291 members who have rated DHT believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Stars DSmod and TSIF, both of whom are ranked in the top 20% of our community.

Less than two months ago, DSmod tapped DHT as a stock severely priced for imperfection: "I believe that the negatives (oversupply, dividend cancellation, recent poor earnings) -- while very real, are more than adequately priced in. Could take some time to see income improvements, but I'm not waiting around any longer as the stock price will likely move first."

In a pitch from this past Monday, TSIF expanded on the tanker's tanking stock. Here's an excerpt:

DHT is one of the few shippers who has given back everything from its rebound off the bottom earlier in the year and has been setting NEW 52 week lows. ... P/B is sub-1 and although recent quarters show a continuous decline in earnings and profit is now very small, it does have positive margins and good cash flow. Cutting the dividend completely pulled the plug the rest of the way out of its stock price as impatient investors decided the risk/reward had slide out of balance. Overall, I like its cash balance, positive, (though small earnings), and upward potential if the market improves.

What do you think about DHT, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 04, 2009, at 12:10 PM, psl8er wrote:

    DHT was set up by Overseas Shipholding Group as a off balance sheet lessor of OSG ships. It charters its ships back to OSG with an upside profit sharing arrangement. It does not trade the ships in the market.OSG is losing money on the ships so there is no profit share and DHT faces a refinancing next year which will be expensive.

    See no reason at all to BUY.

    The tanker markets are in deep trouble with a huge orderbook still to deliver and the tanker companies are all losing cash. Torm yesterday announced they were losing $500,000 per month on each of their products tankers. How much are OSG and TK losing?

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