Otto Marine: DnB NOR reiterate Sell, TP $0.12. Note that FY11 profit warning is not unexpected; modelling 4Q11/FY11 losses of $2m and $53m respectively.
House argue that market has yet to fully priced this in, as consensus is expecting a marginal profit of $2m in 4Q. Expect to revise down 4Q estimates to take into account the profit
reversal, believed to be associated with the fourth and last Mosvold newbuild. Reiterate SELL on the back of potential negative triggers.