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FBR Capital Maintains an 'Outperform' on General Maritime (GMR); Roadmap to Recovery: NDR with CFO Reveals Constructive Thinking

July 13, 2011 6:38 AM EDT
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Price: $0.16 --0%

Rating Summary:
    1 Buy, 3 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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FBR Capital maintains an 'Outperform' on General Maritime (NYSE: GMR).

FBR analyst says, "Our non-deal roadshow with GMR CFO Jeff Pribor revealed a constructive attitude towards both GMR and the broader tanker space, with interest in the name both from current and prospective shareholders. While his view largely results from a self-selection bias and remains non-consensus, we believe it represents the tip of the spear and expect market sentiment to improve as positive catalysts should develop later this year. There was broad agreement the sector is at the cyclical trough, and investors were trying to figure out when and how the up-cycle would develop for the industry, and how GMR plans to survive until rates recover. While the near-term will be tough, we walked away from the meetings encouraged by positive working capital developments and the potential for modest rate increases in the back half of the year. Our Outperform rating on GMR is prefaced on our belief that management has the tools and flexibility to avoid bankruptcy without the risk of massive incremental dilution, and should thus preserve substantial upside for equity investors."

For more ratings news on General Maritime click here and for the rating history of General Maritime click here.

Shares of General Maritime closed at $1.14 yesterday.


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