Deep value, event-driven

Baltic Trading: An Update

Since I recommended going long shares of Baltic Trading (NYSE:BALT) on last December, the stock has been characteristically volatile, running up to $7.94 and dropping below $6 for a period of time.

After one of the worst yearly starts ever for the BDI, the index staged a comeback in the beginning of March, climbing up to 1,620 just a couple of weeks ago. More recently however, shipping rates have found themselves closing in on the YTD lows. Spot-rates for capesizes have remained buoyant during what is usually a very weak season, though rates for BALT's smaller vessels are disappointingly low.

In my last article, we calculated some rough approximations for BALT's 2014 income statement. Given both the

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