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Eagle Bulk Shipping Inc. Message Board

  • roderickb99 roderickb99 Mar 13, 2007 12:41 AM Flag

    CitiBank Says to Sell this Dog

    Analyst: John Kartsonas
    Date: 03/01/2007
    Industry: Shipping
    Company: Eagle Bulk Shipping Inc (EGLE)
    Rating: SELL (3) Speculative (S) Target Price: $13.00

    Back
    SUMMARY
    * EGLE reported 4Q06 EPS of $0.33, slightly
    below our estimate of $0.34 and in-line with
    Street Consensus. Both revenues and expenses
    were about in-line with our forecasts.
    * EGLE agreed to purchase 3 Supramaxes for about
    $46 million each, the highest price ever paid
    for such vessel, according to our data.
    * EGLE is a well managed company; however, the
    stock is expensive at current levels, in our
    opinion. EGLE's return on investment at current
    stock prices is below 7%, lower than our
    estimated cost of capital of about 9-10%.
    * Therefore, we maintain our Sell rating on the
    stock solely on valuation, but increase our
    target price to $13 to account for the
    strengthening in asset prices and some benefit
    from higher contract rollover for EGLE's fleet.
    * We are raising our forward earnings estimates
    to account for recent fleet additions, charter
    rollovers, and the recent secondary offering.

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    • Look at SFL. Downgraded by Citigroup and JP Morgan it went into a sustained 50% growth while paying 8% plus throughout.

    • This is about the worst analysis I have seen yet of EGLE. I have a GTC order in to buy 3,000 shares @ $19.00 and will celebrate its execution. My REIT portfolio is being decimated by buy outs (the 3rd in 6 months) and yesterday I sold 3,000 shares of NXL @ $33.35 which I bought in 2,000 for $15.00 and is being taken out at $33.15 in April. I established a pportfolio of REIT's in 1999-2000 to give my wife spending money at a time when they were all yielding at least 8%. I intend to replace NXL with EGLE for the yield, and hopefully an "expert" like this guy will give me the opportunity. With Dry bulk rates rising, imports to China of iron ore, fertilizer, etc using all available shipping, and downgrade of dry bulk shippers is either a short seller's game or
      an idiot.

    • I wonder how he would rate his own company whose stock has been stuck at $50 or less for well over five years and pays a miserable 4.3%. Add on to that the fact that they were involved in numerous illegal activites for which they paid over $5 billion dollars in fines so their corrupt management could escape justice and do it with stockholder funds.

 
EGLE
8.64+0.67(+8.41%)Jul 31 4:00 PMEDT