David B. profile image Turtleread

David B.

$2.65
Jackson, MS
6/15/08
$185,615,097.03

55
11/28/11
3,274%
18,461.5%
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Stock Pick by David B.

OCNF: Ocean Tide Lifts Company's Boats--OCNF.

Start trading OCNF with real money!

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4 ratings
Posted 3018 days ago on 4/22/09

OCNF will go UP
$300.00 on 10/22/09
$0.83 (-98.84% from time of market call)
$0.83 (-98.84%)
on 5/03/16

Hmmm, another busted flush, once up to $26, now down near the bottom...but rising. Might be time to climb on. 1. A shipping company with 13 huge vessels, hauling dry commodities and tanker goods. 2. Has 5 employees, revenue per at $16M and income per at $3M. 3. High beta, below both 50 day and 200 day moving averages, but significantly increasing volume over the last several days. 4. Sorry, looks like they have withdrawn the dividend for now. 5. Gross margin almost 72% and net margin 17.81%, Total shares outstanding at 18.8M and runs about 1M daily volume. EPS est. expected to rise 5 cents over 2009 year. Sales twice industry and net income nearly five times industry with a lower debt/equity ratio than industry. 6. Book value at $13.32 and return on equity is 12.0. Avg P/E is 8.80. 7. Looking at their cash flows, their income is down (no surprise there); however their operating cash is increasing, financing has increased because the dividend has stopped thus preserving capital, and investing activities cash is down (also, no surprise there). 8. In summary, a small but well-run company for those investors looking for a bargain basement stock with connections to the oil and commodities shipping industries.

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Comments

Posted 8/17/2011, 2:36 am

I was over-optimistic on the price; however, the stock was selling for 92 cents on 4/22/2009 and merged with another company reaching a high of $15.00 before dropping back down to $13.59. Pretty good profit for two years of waiting.

Posted 7/8/2010, 1:06 pm

I am withdrawing my recommendation at this time. While this was very speculative and the company did buy newer ships, more shares seem to have been issued. I would instead refer you to TNP, which has been profitable since inception, has newer ships and more of them, and pays a dividend (.60 as of this date).

Posted 2/24/2010, 5:06 pm

Well, this one is down around 70 cents now. The company has purchased newer ships, either Cape-sized or other and sold older ships. The newer ones are just now putting revenues on the board. Shipping rates are in the thousands per day for these ships.

Posted 9/6/2009, 8:36 am

I've flipped in and out of OCNF. imo with transportation recovering bargains are dwindling. Support 1.25 to 1.28 and the chart is gaining momentum. Fundamentally they are buying more ships, the capsize ships they're buying can't go through the suez or panama canals reportedly but their employment still looks useful. Worth taking a better look at this company now imo . Nice pick David. not sure who did the 1 star but it wasn't me! cheers

Posted 5/21/2009, 6:31 pm

vERY GOOD. WILL BUY.

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