- After the release of the 2Q FY2021 report, DAC trades only 2.1% higher, despite the beaten EPS and revenue forecasts.
- Based on fundamental analysis, I believe that Danaos' financials and prospects are too strong for its stock to trade so low.
- The HARPEX index continues to set new highs and I don't expect it to fall sharply in the short term due to the vessels shortages.
- Danaos seems to have enough time to lock in and guarantee itself astronomical free cash flows throughout the next couple of years.
- The technical analysis of the price action after historical EPS surprises and the price discrepancy between DAC and HARPEX suggest that now is the perfect time to buy.
For further details see:
Danaos: Strong Financials Supported By Technicals Indicate A Lagging Market Sentiment