OceanFreight Inc. (NASDAQ: OCNF)

OceanFreight Inc. (OCNF) is a global provider of shipping transportation services. The Company specializes in transporting drybulk cargoes, including such commodities as iron ore, coal, grain and other materials and crude oil cargoes through the ownership and operation of nine drybulk carriers and four tanker vessels. During the year ended December 31, 2006, the fleet of the Company consisted of eight Panamax and one Capesize drybulk carriers and three Aframax and one Suezmax tanker vessels with a total capacity of 1.2 million dead weight tons (dwt) and an average age of 13.9 years.

OceanFreight Inc. was founded in 2006 and is based in Athens, Greece.

Share Statistics (24-Feb-10)			FY 2007	FY 2008	% Chg	Q3 2008	Q3 2009	% Chg
Symbol	OCNF	Revenue, $Mn	36.13M	147.1M	307.1%	37.70M	29.49M	22.8%
Current price	$0.74	Gross marg.	69.1%	72.4%	4.8%	75.0%	66.6%	-33%
52wk Range:	$0.70-2.10	Oper. margin	28.2%	38.5%	36.5%	0.0%	-22.6%	n/a
Avg Vol (3m):	4,320,110	Net margin	22.6%	18.8%	16.8%	0.0%	-45.0%	n/a
Market Cap.	134.3M
Dil. Shares Outst.	181.8M	EPS, $	0.78	1.94	148.7%	0.61	-0.15	124.6%

Source: Reuters.com, SEC Filings.

Financial Summary

For the three-month period ended December 31, 2009, the Company reported a Net Loss of $135.9 million or basic and diluted loss per share of 98 cents. Included in these results are:

• A book loss of approximately $18.2 million associated with the sale of the M/V Pierre and M/V Juneau.

• An impairment loss of $116.4 million associated with the write down of the Company’s tanker vessels to their fair market values.

• A gain of $1.3 million associated with the change in the fair value of the interest rate swaps.

• Excluding the above items, Net loss for the fourth quarter of 2009 would be $2.6 million or 2 cents per share.

• EBITDA for the year ended December 31, 2009 was $55.5 million as adjusted for the effect of the loss from the sale of vessels and impairment loss.

For the fourth quarter ended December 31, 2009, Voyage Revenues amounted to $28.2 million, Operating Loss amounted to $132.7 million, which includes the effect of the loss from the sale of vessels of $18.2 million and impairment loss of $116.4 million. Net Loss amounted to $135.9, or 98 cents per share. EBITDA for the fourth quarter of 2009 was $11.4 million as adjusted for the effect of the loss from the sale of vessels and impairment loss.

An average of 12.3 vessels were owned and operated during the fourth quarter of 2009, earning an average Time Charter Equivalent, or TCE rate, of $25,172 per day.

For the year ended December 31, 2009, Gross Revenue amounted to $118.5 million. Operating Loss was $164.9 million, which includes the effect of the loss from the sale of vessels of $69.3 million and impairment loss of $116.4 million. Net Loss amounted to $179.4 million or 28 cents per share. EBITDA for the year was $55.5 million as adjusted for the effect of the loss from the sale of vessels and impairment loss.

An average of 12.7 vessels were owned and operated during the year 2009, earning an average Time Charter Equivalent, or TCE, rate of $28,523 per day.

Financial Strength (24-Feb-2010)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	1.21	1.05	1.47	0.83
Current Ratio (MRQ)	1.22	1.14	1.83	0.97
Long-Term Debt to Equity (MRQ)	74.73	109.62	64.50	121.60
Total Debt to Equity (MRQ)	89.30	130.42	91.90	176.66

Source: Reuters.com, SEC Filings.

Analyst Consensus

Buy

Outperform

Hold

Underperform

Sell

No Opinion

This is the consensus forecast among 1 polled investment analysts. Against the OceanFreight Inc. company.

Analyst Detail	Buy	Outperform	Hold	Underperform	Sell	No Opinion
Latest	0	0	1	0	0	0
4 weeks ago	0	0	1	0	0	0
2 months ago	0	0	1	0	0	0
3 months ago	0	0	1	0	0	0
Last year	0	0	2	0	0	0

Source: www.ft.com

Consensus Estimates Analysis

	# of Estimates	Mean	High	Low	1 Year Ago
SALES (in millions)
Year Ending Dec-10	1	116.60	116.60	116.60	123.90
Year Ending Dec-11	1	107.40	107.40	107.40	–
EARNINGS (per share)
Quarter Ending Mar-10	1	0.00	0.00	0.00	–
Quarter Ending Jun-10	1	0.00	0.00	0.00	–
Year Ending Dec-10	1	0.01	0.01	0.01	0.18
Year Ending Dec-11	1	0.00	0.00	0.00	–

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=OCNF.W

Investment Highlights

This week OCNF reported a wider than expected fourth-quarter loss, do in large part to an impairment charge and a fall in time charter equivalent rate. The Company reported a loss of about $136 million, or 98 cents a share, compared with a loss of $11.6 million, or 65 cents a share, last year. The loss in the latest fourth quarter included an impairment charge of $116.4 million, and a charge of about $18.2 million related to the sale of two vessels.

Excluding items, the Company reported a loss of 2 cents a share.

Voyage revenue fell as much as 22% to $28.2 million.

Time charter equivalent (TCE) rate — a measure of the average daily revenue performance of a vessel on a per voyage basis — was down 23%, offsetting a 2% increase in utilization. OCNF shares were down 5 cents at 77 cents, after having closed at 82 cents Monday.

OCNFs fleet:

DRY BULK FLEET
Vessel	Vessel Type	Acquired	Year Built	DWT
Austin	Panamax	7-Jun-07	1995	75,229
Helena	Panamax	30-Jul-07	1999	73,744
Pierre	Panamax	7-Jun-07	1996	70,316
Topeka	Panamax	3-Aug-07	2000	74,710
Trenton	Panamax	5-Jun-07	1995	75,229
Robusto	Capesize	19-Oct-09	2006	173,949
Partagas	Capesize	30-Jul-09	2004	173,880
Cohiba	Capesize	9-Dec-09	2006	174,200
Augusta	Panamax	17-Dec-07	1996	69,053
TANKER FLEET
Vessel	Vessel Type	Acquired	Year Built	DWT
Pink Sands	Aframax	6-Dec-07	1993	93,723
Tigani	Aframax	10-Oct-08	1991	95,951
Tamara	Aframax	7-Aug-08	1990	95,793
Olinda	Suezmax	17-Jan-08	1996	149,085
DRYBULK CARRIERS TO BE ACQUIRED
Vessel	Vessel Type		Year Built	DWT
Montecristo	Capesize		2005	180,263

Source: http://www.oceanfreightinc.com/

Technical Analysis

Source: http://stockcharts.com

OCNF is below its 50-day moving average. This bearish sign is even more significant because the moving average is also trending lower.

OCNF is trading near its lower Bollinger Band. This suggests that the stock price is low relative to its recent price action.

OCNF’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Feb-24-2010	symbol	Share, $	$ Mn	2009	2010	2009	2010
Diana Shipping Inc.	DSX	13.64	1.10B	7.08	n/a	4.14	n/a
Eagle Bilk Shipping Inc.	EGLE	4.89	304.05M	6.34	n/a	1.46	n/a
Genco Shipping & Trading Ltd.	GNK	20.10	637.02M	346.21	n/a	1.67	n/a
Shipping Median			680.35M	119.87	n/a	2.42	n/a
OceanFreight Inc.	OCNF	0.74	134.3M	n/a	n/a	0.52	n/a

Source: Thomson Financial

Insider Trading Activity

NET SHARES PURCHASE ACTIVITY Inside Purchases - Last 6 Months
	Shares	Transaction
Purchases	n/a	n/a
Sales	n/a	n/a
Net Shares Purchased (Sold)	n/a	n/a
Total Insider Shares Held	n/a	n/a
% Net Shares Purchased (Sold)	n/a	n/a

Net Institutional Purchases - Prior Qtr to Latest Qtr
	Shares
Net Shares Purchased (Sold)	n/a
% Change in Institutional Shares Held	n/a

Source: Yahoo Finance

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