Monk's Den

[TheInvisibleHand ™]

MUST READ !!! Seanergy Maritime Holdings Corp. (SHIP)-
"Seanergy Maritime Holdings Corp. engages in the transportation of dry bulk cargo through the ownership and operation of dry bulk carriers. As of December 31, 2009, it operated a total fleet of 11 vessels, consisting of 4 Capesize vessels, 3 Panamax vessels, 2 Handysize vessels, and 2 Supramax vessels"

finance.yahoo.com/q/pr?s=SHIP
Web Site: http://www.seanergymaritime.com


The Facts Earnings Review. Here is the link to the Ship's recent earnings report. The last Q they net around 30 mil and close to 90 mil on the year including 30 mil on a offering. -85 mil in cash(as of march 2010) only 30 mil in short term debt Favorable Capitol structure with around 60 mil shares out and only 42 mil in float.

Income Statement 2009
http://finance.yahoo.com/q/is?s=ship&annual





-Net Revenues for 2009 increased to $87.9 million as compared to $34.5 million in 2008, an increase of 155%

--strong position to take advantage of market opportunities while expanding asset base and profitability with new employment for our fleet they now have time charter coverage for 95% of our fleet for 2010 and 51% for 2011

The Global economy rebounds and after weathering tough times the shippers will be the conduit to ship the commodities to feed a global recovery.... See More

.Operating Income amounted to $40.4 million as compared to an Operating Loss of $31.2 million for the year ended December 31, 2008.

- The Baltic dry Index is rising which convert to higher rates for the shippers going forward.

-A chart that is basing, for a short term break out. Would not be surprised to see a move to the 2-6 range in the short term.

- Very undervalued, and the law of price discovery will kick in and the stock will eventually have to play catch up to the increasing fundamentals.

- A EPS for 2009 @ EPS .98 Can you say a dream come true for Value investors, when you have market disconnects like this you can get some real bargains.

Simply put Earnings per share=

EPS= net income -dividends on preferred/Out standing shares... See More

Trading at PE, just over 1 represents a huge opportunity for people who can do the math, once this is discovered and the theory of price discovery kicks in, we can see possible moves like we have identified before with DTG @ 1 or Fitb @ 1 before they ran both in the short term and longer terms. Dtg was an alert at 1 area and it hit 32+ in a years time. I feel SHIP has tremendous upside potential and is a perfect candidate that should do well both in the short term and longer as the global recovery begins.


In Summation

- The company has strengthened its balance sheet and from my notes has around 85 mil in cash, with only 30 mil due in short term debt. This working debt helped the company expand it fleet. So after the debt payment company will still have a strong cash position of around 50 mil. With Only 60 mil shares outstanding after the offering ... See More and only 42 mil in the float the capitol structure should be reflecting a much higher price. Going forward, the company has 95% of it contracts locked for 2010, so say we assume they make at least 60 mil next year, we could see as high as a 1.00 eps, that's right around where the stock is trading now. Now on average most stocks have a 15 pe, well according to these valuations one would take the eps for the year and times it by a pe multiple on average 15. This would mean that trading at a pe of 15 the stock price would be 15. Even if trading at a 5 pe the stock would be around 5, this is the most compelling reason that ship seems to be way undervalued.