They’re There

If OMI Corp. is a tanker play, it’s a bad one. When the most favorable comment a company elicits from the industry is: “they’re there,” the company’s future seems a little shaky. OMI is the largest tanker owner in the US, with national and international dry bulk and sundry businesses contributing more to the girth of the company than to anything else. Its strategy of diversification, both in terms of sectors and markets, US and international, is an idea that may be dated.

After the brief limelight of the COFR coup last autumn, in which OMI got self insurance on the soundness of its own balance sheet and a 20 point worldscale advantage based on market psychology at no extra cost, OMI is now destined for mediocre or loss-making operations for an indefinite period until the long-expected turnaround in the tanker market occurs.

This is only an excerpt of They’re There

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