Tuesday, March 16, 2010

A stock pick for a long portfolio

Hello,

Today's stock pick is from Oslo Stock Exchange.
It's called Golden Ocean Group and it is a shipping company.
It made profits 0,53 USD/per share year 2009 which was a difficult one.
Todays ending price 11,54 NOK (=1,98 USD) it is almost free P/E being only 3,73.

The macroeconomic outlook for this year is a stimulating world economy and we can expect the shipping industries increasing profits. If the increase is 10 %, the profits turns to be 0,583 USD/share expected P/E being only 3,4.

I am setting a target price for Golden Ocean Group at 8,75 USD respectively 50,96 NOK. This means a potential gain of 440 %. When the price is 50,96 NOK it will be valued fairly without too much expectations on the future.

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