Otto Marine +1.3% to $0.38, helped by news that it has reached settlement with GC Rieber over termination of Polar Marine JV. Otto will get 3 out of 4 vessels under JV; of which one has been chartered out & another sold for €24.1m ($33.8m). CIMB upgrades stock to Neutral from Underperform, lifts target price to $0.39 from $0.30, raises FY10 earnings estimates by 55% to $119m to account for sale, citing Otto's quick turnaround sale is positive although it is tilted in favour of the buyer.
However, cautions over potential 2nd anchor handling tug supply vessel cancellation from existing client Mosvold. Would review call when there is a profitable sale of its 21k bhp AHTS, stronger-than-expected shipbuilding or charter orders.
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