OceanFreight Inc. (NASDAQ: OCNF)

OceanFreight Inc. (OCNF) owns and operates drybulk and tanker vessels worldwide. The Company specializes in the transportation of drybulk of iron ore, grain and other dry commodities. Its fleet includes eight drybulk vessels and four crude carrier tankers with a total dead weight tonnage of approximately 1.22 million tons. Founded in 2006, the Company is based in Athens, Greece.

Source: Reuters.com, SEC Filings.

Financial Summary

Source: Reuters.com, SEC Filings.

Analyst Consensus

One analyst polled by Thomson Reuters rates shares of OCNF a “Hold.”

Analyst Recommendations and Revisions

Source: Reuters.com, SEC Filings.

Investment Highlights

The shipping industry has been affected profoundly by the global recession, as measured by the Baltic Dry Index($BDI), which, after peaking in early July at 11,500, plunging to a low of 800 in early December; finally settled at 3,579 as of December 11, 2009. Economists expect a rebound from a collapse in trade, citing signs of production and purchase orders improvements from Asia, especially China.

The Company recently purchased two Capesize drybulk vessels, taking the total Company fleet to 14 vessels and a total dead weight tonnage of 1.6 million.

The Company appears to be positioned to profit from a rebound in maritime transportation for drybulk and energy commodities. Industry insiders believe the worst for the industry is over. India S. Hajara, chairman of Shipping Corporation recently told the Economic Times that the worst is most likely over for the maritime shipping business.

Global production remains a key driver of drybulk shippers share prices and investor demand, with production in both OECD and ASEAN countries weighing heavily on total world production outputs and shipping activity. Most economists expect a rebound in durable goods production in Asia, especially China. China’s real GDP growth is expected to reach 8% by the end of 2009, officially, while GDP growth in the OECD countries is anticipated to be flat or rise slightly in 2009 and 2010.

Growing employment and GDP have recently been reported in Australia, China and Singapore, providing evidence that an Asian economic rebound is at hand. Recent better-than-expected unemployment and retail sales for the month of November in the United States and Europe suggest that the recession may be passing a little fast than expected in the West.

Analysts expect a rebound in the price of company shares in this maritime shipping sector, citing the most recent Baltic Dry Index (BDI) trades below asset value. Before the financial crisis, the BDI traded at 4 to 5 times asset value.

Most Recent Earnings

On November 10, the Company reported revenue of $29.5 million for the third quarter, compared with an estimate average of $33.6 million. Earnings of 11 cents was reported, while analysts expected no earnings for the third quarter.

Technical Analysis

OCNF trades below its 13-day moving average. This bearish sign is significant because the 13-day moving average is downwardly sloped.

The MACD for OCNF currently indicates a bearish signal. The MACD is below the signal line, a 9-day moving average of the MACD. The MACD is below the critical level of 0, which implies the past price action had been negative. Overall, the chart is bearish.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

Source: Yahoo Finance

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice. The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report. Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.