Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, dry bulk shipper Diana Shipping
With that in mind, let's take a closer look at Diana's business, and see what CAPS investors are saying about the stock right now.
Diana facts
|
Headquarters (Founded) |
Athens, Greece (1999) |
|
Market Cap |
$943.3 million |
|
Industry |
Marine |
|
Trailing-12-Month Revenue |
$238.8 million |
|
Management |
Chairman/CEO Simeon Palios (since 2005) |
|
Return on Equity (Average, Past 3 Years) |
22% |
|
Cash/Debt |
$297.7 million / $321.7 million |
|
Competitors |
Navios Maritime |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 2,487 members who have rated Diana believe the stock will outperform the S&P 500 going forward. These bulls include Xitopie and GingersBread.
Just last month, Xitopie tapped Diana as a tempting turnaround opportunity: "A bit contrarian play, but this is the time to be accumulating shares of good companies in industries that are currently out of favor for the long term. Diana and [Genco Shipping] are perhaps the best in class players in this industry."
Diana's solid balance sheet and attractive fleet fuel our community's high opinion of the stock. For example, Diana sports a debt/capital ratio only half that of rivals Navios, DryShips, and Genco, all while owning the youngest fleet in the dry bulk shipping business: a mouthwatering combination, for sure. In March, CAPS member GingersBread offered yet another example of management's capital allocation smarts:
Originally attractive because of its significant dividend yield, the company wisely discontinued dividend payments during the downturn, as other shippers found themselves bankrupt, in order to hoard capital so that they could buy out other shippers' fleets. The company is currently incredibly undervalued, and it has a lot of growth potential even if it were correctly priced. Global trade will eventually pick up again, and [Diana] stands to profit enormously when it does, benefitting shareholders through capital appreciation as well as through the presumed reinstatement of the dividend.
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