The following chart shows the recent performance of the Baltic Dry Index, which is a composite of several indices that track the daily shipping rates for dry bulk ships of various sizes.
As we see, the BDI has had a rough 2012 so far. After quite a run up in Q4, it tanked to its lowest level in 26 years. Given what we know about what the . . .
→ Read More: Short Squeeze among Dry Bulk Shippers? ($DSX, $GNK)
Long-time readers of this site will know that I am bullish on the long-term prospects of the maritime shipping industry, which is highly cyclical and currently in the trough. Specifically, I like Diana Shipping (NYSE: DSX) and Genco Shipping & Trading (NYSE: GNK) which I have written about here and here. The Yale School of Management’s Qn magazine recently interviewed Scott Lewallen, Global Head of Shipping Finance for SEB Merchant Bank, which provides great insight into the shipping . . .
→ Read More: How the maritime shipping industry works ($DSX, $GNK)
I have written about two of my favourite dry bulk shippers, Diana Shipping (NYSE: DSX) and Genco Shipping (NYSE: GNK) here and here. The industry has been suffering due to an oversupply of ships, however according to forward freight agreements, which are arguably the most accurate assessment of the market’s current expectations about future shipping rates, demand resulting from Japanese rebuilding will soon absorb the excess supply.
Rates for panamaxes, the largest coal and iron-ore carriers to pass . . .
→ Read More: Shipping rates forwards show expected 55% rise due to Japanese Rebuild (DSX, GNK)
I am bullish on Diana Shipping (DSX) as detailed here. Since that article, I have posted several other pieces about the dry shipping industry. Each time I bring up the topic of DSX or dry shipping, I get a flood of emails along the lines of “If you like Diana Shipping, what do you think of Genco? It has a lower P/E, so . . .
→ Read More: Genco Shipping: Adequately rewarded for relatively higher risk (GNK, DSX)
Usually earnings calls are pretty bland, with a recitation of the figures that everyone is looking at already, followed by Q&A designed to help fill out the analyst’s model (gotta get next Q’s estimates down to 4 decimal places!). The utility of these calls for value investors is often low, as analysts like to focus on the ultra short-term (see Saj’s post here). Even if not strictly useful, sometimes they can be entertaining. Today I came across this . . .
→ Read More: Earnings Calls: Getting Hot in Here (GNK, MS)