Otto Marine

Otto Marine: SC maintains In-line with $0.09 TP. House lower TP to $0.09 from $0.12. The revision reflects changes to house 2013 earnings estimate (now assume a loss) and valuation methodology. See evidence of operational improvement but think losses are still likely in 2013. Otto Marine’s turnaround depends on securing new orders for the shipbuilding segment, which in turn requires working capital from the sale of vessels in inventory. The timing and conclusion of these vessel sales are still uncertain.