Otto Marine

Otto Marine: Formally announced that Mosvold Supply has terminated the contract for construction of Builders Hull No. 7048 and demand refund of all advance payments amounting to US$26.7m. While transactions not expected to have impact on NTA and EPS for FY11, we note that news could still weigh on stock, whose share price has been struggling in recent mths, over lack of order wins due to industry excess supply for OSVs. Technically, see support at $0.21 followed by $0.195.