Toro Corp.: Surprise Special Dividend And Potential Major Catalyst Approaching - Buy
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Henrik AlexInvesting GroupFollow5ShareSavePlay(11min)CommentsSummaryToro Corp. reported profitable third quarter results and surprised investors with a generous special dividend announcement. New buyers will remain entitled to the special dividend until the January 16 payment date. However, the real investment thesis continues to center around the company's near-term opportunity to grab a large stake in former parent Castor Maritime at highly favorable terms.
Including Castor Maritime, Toro Corp.'s adjusted net asset value per share would increase from $7.35 to approximately $25.00. With a key catalyst potentially close at hand, I am reiterating my "Buy" rating on Toro Corp.'s common shares and raising my price target from $7.50 to $10.00. Art Wager/E+ via Getty Images Note: I have covered Toro Corp., or "Toro" (TORO) previously, so investors should view this as an update to my earlier articles on the company. A little over two months ago, I upgraded sharesThis article was written byHenrik Alex20.75K FollowersFollowI am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.Despite not being a native speaker, I always try to deliver high quality research to followers and the entire Seeking Alpha community.Analyst’s Disclosure:I/we have a beneficial long position in the shares of TORO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.