Stanislav Oleynikov

Genco Shipping: A New Bubble in the Making?

To bsharvy:

P/E ratio makes sense if earnings are sustainable. If gains are on-time by nature, it is not logical to apply any multiple. Charter rates, that were singed during the boom are not sustainable.
Do you really believe in the growth of earnings for next 5 years? It is laughable.

By saying that a drybulk shipping company is just a bunch of ships, I mean that it is just a holding company for some standardized and marketable assets. It has no competitive advantages or any other kind of intangible assets, other than the ability of the management to make investment decisions.

When making calculation of the value of charters and ships, I took into consideration expected cash flow from 9/30/2008. That is why, Q4/2008 earnings are included in valuation. Remaining payments for new vessels are included in the balance sheet.