Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Genco Shipping Offers A High-Risk Charter Rate Call Option

Dry bulk shipping company Genco (NYSE:GNK) is holding on by its fingertips. With charter rates crushed by capacity additions over the last three years, Genco is deep in the red and facing a day of reckoning with its lenders. Recent spikes in certain dry bulk rates are encouraging, but not enough to get the company back on its feet without the cooperation of those lenders. Although I do believe Genco will manage to restructure or renegotiate its debt, that's a risky call at this point and the company's net asset value is in the red. Still, for those investors looking to bet on further recovery in charter rates, Genco could offer meaningful bang for the buck.

Dry Bulk...

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