THE NUMBERS

Despite the economic recession, business is beginning to turn around for TRBR. Just take a look at their second quarter numbers.

Revenue increased 10.1% over the first quarter. A big contributor was surging revenue from its new Dominican Republic service. And, the company returned to profitability with net income of $0.7 million or $0.05 per share.

We’re also seeing another important sign that business is improving.

Earnings estimates for TRBR are moving higher. In the past 30 days, the current year estimate has jumped 73% to $0.19 per share. And, the 2010 estimate is up more than 12% to $0.45 per share. These represent year over year increases of 170% and 137% respectively.

Looking at the balance sheet, however, one item sticks out like a sore thumb.

The company has a stockholders’ deficit of $1.8 million. While this is cause for some concern, TRBR is not on the verge of default. Their long term debt of $107 million isn’t due until 2012. They’re buying back debt at a discount whenever possible. And, they’re in compliance with their financial covenants.

POTENTIAL RETURNS OF 108% OR MORE

The stock is down significantly from its highs because of the credit crisis and economic recession. At these prices, the stock has huge upside potential.

A price to sales (P/S) ratio analysis suggests a much higher stock price.

The average P/S ratio in the shipping industry is 1.02. But, TRBR’s P/S ratio is a mere 0.52. With a P/S ratio equal to the industry average, TRBR would be trading at over $10 a share. That’s about double the stock’s recent price.

As the economy recovers, TRBR should continue seeing higher and higher volumes in its shipping lanes. This should translate into growing revenue and earnings. And, ultimately a much higher stock price.

We might even see it trade up to its old highs above $15. That’s about 186% higher than its recent price.

Based on our analysis, TRBR is worth at least $11.00 a share. Buy TRBR now for potential gains of 108% or more.