Diamond S Shipping, Inc. (DSSI, Financial) (DSSI - $6.66 – NYSE) is a shipping company focused on crude and product tankers worldwide. Diamond S Shipping fundamentals are tied to oil prices and consumption which are under tremendous pressure due to the negative impacts globally from COVID-19. The company continues to execute as best it can in a very difficult environment. However, it does appear that spot shipping rates might be bottoming with current rates toward the bottom of the 10yr average. We started buying shares of Diamond S Shipping last quarter partly on the thesis that spot rates were likely to bottom in 2021 as the global economy recovers. The other part of the thesis is valuation as the stock trades at a discount to underlying ship values.
From Keeley Asset Management Corp (Trades, Portfolio)'s Small-Mid Cap Value Fund fourth-quarter 2020 shareholder commentary.
