Rhody Trader

Euroseas (ESEA) is a stock I posted about a while back and one I’ve been playing myself. The stock has had a very nice run up in recent sessions – going from around $14 to over $17 in about a week. The stock has pushed through the latter level today on a combination of things. Firstly, the whole container shipping group is doing well. Second, the company announced an increase in the quarterly dividend. Third, the company announced the aquisition of a new ship which already has contracts locked in through 2011, and options for up to three more years.

I haven’t seen any updated analyst reports, but I’m sure those who cover the company will be redoing their estimates and target levels on the news. The new tanker will add several million in revenue, though I’m not sure what that’s going to mean in terms of profits to the bottom line. You have to figure, though, that the company wouldn’t have made the purchase if there wasn’t a profit benefit to be had.

Current FY08 forecasts are for $1.86 EPS. Price targets of $20 were previously made.

I’m up over 100% right now in my option position.

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