Dorian LPG Ltd. (LPG) Stock Is Up on Wednesday: Should You Buy?
September 10, 2022
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Dorian($NYSE:LPG) LPG Ltd. stock is up on Wednesday after the company announced that it had entered into a definitive agreement to acquire liquefied petroleum gas shipping assets from Vitol Group. The move is expected to be immediately accretive to Dorian’s earnings. Well, that depends on your investment timeframe and risk tolerance. If you’re a long-term investor, then this acquisition could be a positive for Dorian, as it will increase its earnings power.
However, if you’re a more short-term oriented investor, then you may want to wait and see how the integration of the new assets goes before buying Dorian stock.
Share Price
stock is up on Wednesday, after opening at $14.0 and closing at $13.8, down by 1.2% from last closing price of 14.0. Despite the slight dip, Dorian LPG remains a top pick for investors looking for exposure to the growing liquefied natural gas market. The company’s modern and efficient fleet of vessels is well-positioned to capitalize on the growing demand for LNG transportation. Dorian LPG also has long-term contracts with several major energy companies, providing it with a stable source of revenue.
VI Analysis
DORIAN LPG is a strong company in terms of growth, with a moderate revenue or earnings growth. It is classified as a ‘rhino’, which is a type of company that has achieved moderate revenue or earnings growth. Due to its moderate growth rate, such company is deemed less risky and volatile as it pursuits a sustainable growth rate.
However, it has a high health score of 7/10 considering its cashflows and debt, which means that it is capable to safely ride out any crisis without the risk of bankruptcy.
For more details please visit Star Chart.
Summary
is a provider of liquefied petroleum gas transportation services. Here are some things to consider before making an investment in Dorian LPG:
The company’s financials. Review Dorian LPG’s financial statements to get an idea of the company’s financial health. Are its revenues and profits growing? Is it taking on too much debt?
The outlook for the LPG industry. Is demand for LPG expected to grow? What about Dorian LPG’s competitors?
Dorian LPG’s management team. Do they have a track record of success? Do they have a vision for the company’s future?
The company’s share price. Is it trading at a discount to its intrinsic value?
Your investment goals. Are you looking for long-term growth or income? What level of risk are you comfortable with?
However, be sure to do your own research before making any investment decisions.
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