OSG - Danaos: Could A Take Private Deal Be In The Works?
2024-05-22 22:43:30 ET
Summary
- The Containership market has strengthened significantly in the past few months, with rates exceeding 2024 highs set earlier this year.
- With a strengthening containership market, Danaos low valuation and high cash flow make it a compelling target for a take-private or acquisition.
- DAC has underperformed competitor GSL by a large amount, despite their businesses being impacted by the same geopolitical events and performance being largely the same.
- After paying for 6 new containerships this year, Danaos has minimal obligations for its substantial cash flow in 2025 and 2026.
- Danaos could finish the year over $100/share, with further upside in 2025.
Danaos Corporation ( DAC ) just announced their Q1 earnings will be released on Tuesday, March 28th. This strikes me as unusual because they've been very consistent in reporting between 5-6 weeks after the end of the quarter going back for the past 5 years (you can see these dates here on SeekingAlpha.) The latest release I could find was May 18th, 2020, during the confusion from COVID....
Danaos: Could A Take Private Deal Be In The Works?