Special situation DHT,
Tanker DHT is doing a rights offering of common and preferred (which is like common, but slightly inferior) at 0.70.
I am taking a small position, so I will own rights and have a call option to participate in the offering. I am assuming that many people won't be able to sign up, so I will have a call option to oversubscribe at a good price.
I listened to presentation, and it seemed liked a good opportunity to invest in a beat-up industry at a good price, with a company that will have raised cash and therefore hopefully be able to weather the storm.
I have down well in other special situation rights offerings (including predecessor company to MIL), but have not done well with tankers. As always, do your own due diligence. I believe the Ex rights date is the 27th, so you have the weekend to decide.
If anyone else cares to comment on the fundamentals of the company and/or how bad current management is, feel free to give me your feedback.
Best,
MC
PS: Feel free to hit me up publicly or privately with any special situations you might be interested in. |
