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.
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.
This analyst doesn't have a clue. He has had a sell on Egle for a long time, being completely wrong. His reports have been useless. Fortunately, I have ignored them. One of the things he misses is that this is a high income stock and one must analyze the ability to keep paying the dividend. That's not how he approaches it. He should have been fired a long time ago.