I have a feeling as we move through the 3rd Quarter and on to the 4th Quarter, the Mutual Funds and large investment groups will be looking to shore up the "Returns" in their portfolios and DHT is one of the few multinational corporations offering a 20% plus return in dividends. Hence, the price of our stock should increase 30%-50%, easily. I know some of the folks on this thread are concerned management is not buying any stock. Personally, I do not have a clue one way or the other, but it is possible they have someone buying on their behalf, in attempt to avoid the "red tape" of SEC regulators prying into their affairs. In any case, I hope DHT's share price doubles in the next year at least. Good trading.
Question is then, are they betting with a pat hand? i.e. do they know something we shareholder don't. Or are they drawing blind like us. Just bought another 120 @ 4.90 for a grand total of 3845 long shares. I'm betting on the .25 and share price rise to around 6.00 if we get the .25. And I'm willing to settle for a split pot. say .12 divy for a 9/10 % yield and shares prices remain stable around 5.00 till things get better.
I started a posistion at $4.80 and I'm a buyer bewteen 4.80 and 5, but if it falls below 4.80, I don't think I will be here anymore. Sometimes the charts and the fundamentals just don't matter. I worry about the div, which really is the only reason to stay in at this point. If there is a decrease in the div below $.18 I think the market will see that a a huge weakness, even though it still is comparatively a great div at $5. Continuing the div at $.20 or above should be a bullish sign. If they increase the div, I am going to be a big buyer up to $5.50. As far as I am concerned though, I'm quarter to quarter with this stock.
I continue to "pull the trigger" when the price dips below $5.
Long-term charters into 2012 for the fleet are good indicators, but never take anything for granted, as Cramer says "do your homework".
Disclosure: I work in the shipping industry, I own DHT, TNK.
A quick way to help determine if a company has the cash flows needed to pay shareholders is to compare its depreciation expenses with its capital expenditures within the context of its operating income.
Anyone have the information to do this analysis?
This is from a stock market Guru.
Once we get through the burning brush and if our fleet is still floating, I foresee a quick trip to the status quo of $12.00-$18.00 that DHT was steady eddie for so long. Now if we do manage to come through, the difference on this go round will be the extraordinary amount of liquidity that is now just sitting in "house held" accounts. Approxiamately 9.7 TRILLION dollars. ($9,700,000,000,000.00). It's hard for me to get my mind wrapped around that figure, but the big portion of that number will be headed to the equity markets. And what is going to push it there is human nature. Basically, greed. As soon as someone steps out into the mix and reports a higher return than the T-Bills or Bonds, the floodgates will really open up and the tide will rise higher than it ever has before. A company like DHT that is a steady earner and they pretty much know what their numbers will be due to long term contracts; well I foresee investors throwing money at DHT. Nothing wrong with DRYS (I even own a little bit), but if they can trade at $83.00/share prior to this debacle, then DHT can surely reach $30.00/share in in new world economy. Pardon the metaphors. Good trading.
You're wrong. The sector is weak, very weak so you will see very little Mutual money in this stock. The dividend is ridiculously high which indicates an instability and unsustainability in the long term. The div will get cut back, but not cut completely.
DHT management have indicated that the dividend will continue at $.25. They state that they have long term contracts which will provide the funds to pay the dividend. They also have a large non-cash expense which is depreciation that does factor in when net income is calcuilated each quarter.