Is DHT a Buy at Its Current Price?

Investment Analysis Clubs Hohum's RollerCoaster Ride
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There are two ways to make bets on stocks. #1, do the Ben Graham thing of “Buy at a discount to intrinsic value.” #2, do the Wm O’Neil thing of “Buy what can prove it can go higher by already having gone higher”. The first method of making bets on stocks depends on ‘mean reversion’. The second method depends on ‘momentum’.

Here’s a price chart for DHT, a stock that has been mentioned elsewhere in this forum. I’ll leave to you and your preferences for making bets on stocks whether DHT is a 'buy ’ at its current price.

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Arindam,

If the global economy is slowing down, then transportation stocks won’t do well. So buying DHT at its current price would seem to be a high risk.

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Otsoa,

Yeah, DHT popped today likely due to yesterday’s favorable earnings report. Also, the company’s fundamentals are decent and the sort of stock a value investor would be interested in.

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However, its current price is a worrisome risk.

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Actually, let me revise my previous comment about DHT’s prospects being worrisome. On a cash-flow basis, DHT is 89.9% undervalued and cheap, clearly meeting Ben Graham’s demand that a stock’s price offers “a margin of safety”.

What is worrisome is the projected growth prospects for DHT. The consensus is that DHT’s earnings growth rate and EPS growth rate are no better than its industry’s growth rate of 6.2%. Worse, analysts don’t expect that to improve.

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@Arindam – Over on the “Shipping News” board, you shortened my handle to Ho. That was hardly accidental.

Furthermore, you claimed “Your supposed “help” isn’t a help”

Now you come to my board and start a thread “Is DHT a Buy at its Current Price?”

Sorry, HohumYNWA has standards … and you fail to meet them.

Dripping with irony - Arindam, who claims I was no help, comes seeking for my opinion.

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