Stock Alert for Odyssey Marine Exploration (OMEX)
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    Stock Alert for Odyssey Marine Exploration Inc. (OMEX)

    Odyssey Marine Exploration Inc. (OMEX) is engaged in deep-ocean exploration using innovative methods and relative state-of-the-art technology. The Company conducts extensive search and archaeological recovery operations on deep-ocean shipwrecks around the world. OMEX also has a minority ownership stake in Neptune Minerals, a company focused on discovering and commercializing high-value mineral deposits from the ocean floor, and provides proprietary deep-ocean expertise and equipment to Neptune under contract. It also provides deep-ocean contracting services to governments and companies around the world.  Between 2005 and 2011, the Company searched more than 5,000 square nautical miles of seabed in the western English Channel and the Western Approaches to the Channel, recording approximately 300 shipwrecks.
    Share Statistics (26-Sept-11) FY2009 FY2010 % Chg Q22010 Q22011 % Chg
    Symbol OMEX Revenue, $Mn 4.35 21.00 382.8% 4.33 6.74 55.7%
    Current price $2.86 Gross marg. 84.4% 99.1% 17.4% 97.9% 99.3% 1.7%
    52wk Range: $1.68-$4.43 Oper. margin -80.0% -13.8%
    Avg Vol (3m): 1,093,720 Net margin -428.3% -111.1% -74.1% -80.6% -28.6% -64.5%
    Market Cap. 208.19M
    Shares Outstanding 72.79M EPS, $ -0.33 -0.36 9.1% -0.05 -0.07 -40.0%

    Source: Reuters.com, SEC Filings.

     

    Investment Highlights

    Shares of OMEX lost 5.61% in the last five days, though the stock gained 2.5% in the last month.  Year-to-date, the stock is up 67.3%.

    Shares of OMEX traded as much as 26% higher on Monday after the after the Tampa, Florida-based shipwreck recovery company said it has confirmed the discovery of SS Gairsoppa, which is believed to be carrying about 7 million ounces of silver.

    OMEX reported that the SS Gairsoppa, a 412-foot steel-hulled British cargo ship torpedoed by a German U-boat in February 1941, is sitting nearly 4,700 meters below the surface of the North Atlantic, approximately 300 miles off the coast of Ireland in international waters. It was enlisted in the service of the UK Ministry of War Transport.

    The report said contemporary research and official documents indicate that the ship was carrying silver valued in 1941 at nearly 600,000 British pounds, or approximately 7 million total ounces of silver, including more than 3 million ounces of private silver bullion insured by the UK government, making it the largest known precious metal cargo ever recovered from the sea.

    The UK Department for Transport last year awarded OMEX, through a competitive tender process, the exclusive salvage contract for the cargo of the SS Gairsoppa. Under the salvage agreement, OMEX will retain 80% of the net salved value of the silver bullion recovered under the contract.

    OMEX  said it has begun the process of specifying and assembling the tools and equipment for the salvage, and anticipates that operations will begin in the spring as soon as the weather window begins to open up in the North Atlantic. The system being mobilized for modern salvage recovery can also be used on other projects, several of which are in various stages of exploration or confirmation at this time.

    “We’ve accomplished the first phase of this project – the location and identification of the target shipwreck – and now we’re hard at work planning for the recovery phase,” said Andrew Craig, OMEX senior project manager. “Given the orientation and condition of the shipwreck, we are extremely confident that our planned salvage operation will be well suited for the recovery of this silver cargo.”

    Also, the Company looks forward to commencing several other  projects and contracts during the balance of the working season, and may be conducted through the winter months. It said some these projects are also in partnership with governments and will feature pre-negotiated salvage awards.

    Source: http://shipwreck.net/pr233.php

    Financial Summary

    OMEX reported revenue of $6.7 million for the second quarter of 2011, up 56% compared with revenue of $4.3 million reported in the second quarter 2010. The Company attributed the increase to higher expedition charter revenue, which was associated with an increase in subsea mineral mining charters ($4.2 million), offset by a reduction of Robert Fraser shipwreck projects ($1.6 million) and other miscellaneous charters ($.1 million).

    The net loss per share for the second quarter was $(0.07), compared to a net loss of $(0.05) per share in the second quarter 2010. In calculating the net loss per share available to shareholders, an additional $2.6 million is added to the GAAP net loss for non-cash transactions of the Series G redeemable preferred stock and warrants as explained in the Notes to the Financial Statements.

    Marketing, general and administrative expenses were $2.4 million in the second quarter of 2011, as compared to $2.3 million in the second quarter of last year, mainly due to an increase in employee-related and crew transportation expenses in 2011.

    Operations and research expenses were $5.2 million in the latest quarter, as compared to $5.1 million a year earlier. The $.1 million increase was primarily due to marine operations.

    Source: http://shipwreck.net/pr230.php

    Financial Strength (26-Sept-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 1.58 1.23 1.31 0.78
    Current Ratio (MRQ) 1.62 2.07 1.64 1.14
    LT Debt to Equity (MRQ) 47.58 28.00 49.86 109.40
    Total Debt to Equity (MRQ) 183.83 40.86 73.51 146.35
    Interest Coverage (TTM) -19.85 0.95 0.33 24.02

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    1-5 Linear Scale

    Current

    1 Month
    Ago

    2 Month
    Ago

    3 Month
    Ago

    (1) BUY 1 1 1 1
    (2) OUTPERFORM 1 1 1 0
    (3) HOLD 0 0 0 0
    (4) UNDERPERFORM 0 0 0 0
    (5) SELL 0 0 0 0
    No Opinion 0 0 0 0
    Mean Rating 1.50 1.50 1.50 1.00

    Source: http://www.reuters.com/finance/stocks/analyst?symbol=OMEX.OQ

    Consensus Estimates Analysis

    # of Estimates

    Mean

    High

    Low

    1 Year Ago

    SALES (in millions)
    Quarter Ending Sep-11 1 11.20 11.20 11.20
    Quarter Ending Dec-11 1 5.00 5.00 5.00
    Year Ending Dec-11 1 25.00 25.00 25.00 25.00
    EARNINGS (per share)
    Quarter Ending Sep-11 1 0.05 0.05 0.05
    Quarter Ending Dec-11 1 -0.04 -0.04 -0.04
    Year Ending Dec-11 1 -0.12 -0.12 -0.12 -0.12

    Technical Analysis

    Source: http://stockcharts.com

    OMEX’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility.

    Friday, OMEX closed above its 20-day moving average. This is generally considered to be an indication of a bullish trend.

    OMEX’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Sept26-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    UnderSea Recovery Operation UNDR 0.0022 105.90K n/a n/a n/a n/a
    Deep Blue Marine DPBE 0.0007 1.38M n/a n/a n/a n/a
    Seafarer Exploration Corp. SFRX 0.0090 35.15K n/a n/a n/a n/a
    Marine Exploration Inc. MEXP 0.0150 630.83K n/a n/a n/a n/a
    Sovereign Exploration Associates Int’l. Inc. SVXA 0.0007 25.63K n/a n/a n/a n/a
    Research Services Median       30.28 n/a 5.07 n/a
    Odyssey Marine Exploration Inc. OMEX 2.86 208.19M n/a n/a 8.33 10.20

    Source: Thomson Financial

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