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Thread: Market Watch April 19th-23rd

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  1. #19
    john is offline
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    Joined: May 2008 Posts: 2,836
    OK boys and girl, I told you before about this gem but the two articles out just confirms what I said before what DSX would do with all that extra money they were not giving to shareholders as dividends.

    Now what you will have seen is that DSX is getting set up for, is major future growth. What you should notice in the last two links is the dwt of the ships the cost to pruchase and then the rate they are getting for the much smaller dwt Panamax ship. Here let me break it down for you. They are now getting 25,000 per day (it cost about 5,000 per day to run that ship) or revenue of 17.3 million for 23 months that will yeild a profit of 13.84 million for the 23 months. Next is the cost of the next 2 ships they are buying. That cost is 59 million per ship those ships are almost 3 times the size of the Panamax ship they just signed contracts for. Now while the rate is not 3 times the panamax ship it is about twice as much and the cost to run it is only about 6,500 per day. What that means is that if they can get the same rates of today in 2012 when they are delivered then they will get about 28 million in 2 years, that means in less then 4 year they will have already paid for those ships and all the rest is profit (the average age of that type of ship is 25 years).

    This is not a short term play it is a long term one that will yeild huge profits in the end if you buy at this price, although I think a pull back may happen from its present PPS.

    discloser: I own alot of this company. I am long on it.
    Last edited by john; 04-26-2010 at 01:39 PM.

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