A bit of cynicism

It looks like FBR has put out a report claiming that DCIX is an “outperform” and setting a price target of $20/share – a hefty 60%+ up from its current price. I don’t know what their timeline is with that rating, but that’s a lot to aim for when the company is still in the red. A little detective work shows that (big shock?) FBR is now the largest shareholder of DCIX, with 17.6% of the outstanding shares.

I presume that their belief in its quality is mostly genuine – otherwise they wouldn’t have bought into the private placement when Diana Shipping was raising money – but the timing and cheerfully optimistic price target are self-serving in a blatant way that sort of makes me grin.

Prospectus: http://www.secinfo.com/d14D5a.r728h.htm
Report: DCIX report

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