Epic : GOC

Web site : http://www.gocarriers.com/

Global Oceanic Carriers Limited (GO Carriers) is a Jersey Channel Islands registered company and is a fully integrated shipping company comprising ship ownership, management, chartering, brokering, and through its strategic partnerships, ship building and repair concentrated within the dry bulk sector.



Superb summary here : http://boards.fool.co.uk/Message.asp?mid=10520002

And the new contracts announced today have just increased the earnings figures in the TMF summary post.






.

ST, its is very exciting. The new management team really has, it appears, started to get the best out of GOC, lets hope they have continued success (and that the BDI index stays strong and stronger)

PP, this has to be a decent investment. I haven't investigated this aspect yet, but one assumes that the co will continue to grow its fleet by adding new vessels. There appears to be considerable cash generation (that EPS of 23p is over 9 million profits) and with the PE at 4.65 for the year to May 2008, the potential is all to the upside.

I have bought some this morning at 106.56p. Will continue to watch - may put the farm on this one but would like to see a bit more volume buying.

ST, I think a lot of people will wait for results, read them, and then be buying, they will want to see what is said. I am quite happy to buy in now, and then add more later.

FY end is May 31st, so as of 1st June GOC is on a current year forecast PER of times 4.65....too cheap.

Yep - long-term hold. And a multi-bagger, too, I should think.

I haven't looked to see the multiple for the shipping sector, but if one assumes that 10 is reasonable (and it would look pretty cheap, given this co's projected earnings growth), then the target price is 230p, which is more than double the current SP.

Some more thoughts:

At its current market cap of 42 million, the company is trading 30% below net asset value of approx 60 million as reported at end Nov 06.

New vessels recently acquired have cost between approx 14 and 18 million. Assuming GOC makes its projected 9 million net profit, allow 1 mil in case they decide to pay a very generous dividend of 2.5p per share and that leaves 8 mil with which the co could buy half a boat, financing the balance from debt.

WDIK, but it does look promising.

Bit smaller spread would have been nice, im in, paid slightly higher than everyone else, which hardly matters for the long term...

Welcome aboard, BT! I agree the spread is a bit offputting. Could be that the MM is short of stock (I'm guessing that as it's not too widely known, it may be tightly held) or simply that the stock is normally a bit illiquid and therefore the MMs aren't manipulating it.

Good luck, anyway!

And the spread just got even wider: GOC Bid: 103p Offer: 110p Change: 1.5

What this stock needs is a big old shake. Another TU ought to do the trick.

GOC Bid: 108p Offer: 112p Change: 3.5

A good start to the day. Only 12K traded, though.

This could be a classic growth story...

I think so, BT. Am still trying to find some more cash to put into it.

I notice that trading volume so far today is 48k, above the average already, so could this be a good day for GOC?

L2 is all blue and now 1 v 1 @108/112

If you look at say BMS, and look at their rating, and other sector stocks, its easy to see that GOC is very undervalued presently.

I'll keep tucking them away, and waiting for the rerating to happen :)

If you take BMS which is in the same sector, this is trading at around 11 times curent year forecasts.

If you apply that 11 times rating to GOC, you get 253p "fair value" for GOC just on that sector comparison.

Would seem the market is a bit lite of shares given the tick up on every buy, exciting growth story in the making here.

Yep - up approx 6% on t/o of only 80K: GOC Bid: 110p Offer: 115p Change: 6

Suits me fine :o)

PP, thanks for the BMS reference, as I was planning to look into sector comparisons.

Even if you go down to 8.5 times forward (which is the average rating of shippers (those with ships) across Europe, you still have a value of over 200p.

Therefore, for me, I would have a 200p target for now, and see how things go after that is reached.

www.chart-breakouts.co.uk comment at 12:40pm today, spot on re MMs i guess.

"A good move up for our new buy GOC today and it would seem the Market-makers haven't a great deal of stock given the spread and the amount of stock they are willing to sell. We really like the look of this stock and as we said yesterday brokers are forecasting eps of nearly 22p for 2008 (link) putting the shares on a bargain pe ratio. A few good comments on bulletin boards suggests if the stock is re-rated to its peers then the share price would be more than twice the current value. Some stocks are often overlooked and we're hoping this is the case here as we have managed to buy a decent amount."

www.chart-breakouts.co.uk

GOC Bid: 115p Offer: 122p Change: 12 on trading volume of 181K, which, for this stock, is pretty decent.

Managed to get my Dad involved as well, at 115p, so he's chuffed :o)

Thanks for the post, Dave.

From a post on AFN :

jimmymac2 - 17 May'07 - 22:21 - 242 of 242
had a few today:

Share Whisper:

"meanwhile there was solid buying in Aim listed GOC the supplier of bulk shipping as word of broker upgrades and strong trading did the rounds"

wish they' narrow the spread, want to add, maybe i'll just have to bite the bullet, has always been a big spread unfortunately.