Marco Polo Marine

Marco Polo Marine (MPM): DMG 3QFY14 results review; MPM’s 3QFY14 results were weak, weighed by low utilisation of its barge fleet and low drydock volume. Also, four of its OSVs were inbetween charters, resulting in an exceptionally poor quarter. Yet, DMG continues to see deep value in the stock, which is trading at a 30% discount to book even as MPM remains profitable and strongly EBITDA positive. House maintains BUY with TP of $0.65, with key catalyst being the signing of a rig contract.