Genco Shipping & Trading Ltd.NYSE
Genco Vs Diana: A Great Pair Trade In Dry Bulk Shipping
Stanislav Oleynikov, CFA • 16 Comments
Stanislav Oleynikov, CFA • 16 Comments
Thu, Nov. 17, 7:37 PM
- Today's trading brought a reality check for dry shippers: DRYS closed -85%, DCIX -68%, GLBS -58%, SHIP -46%, ESEA -43%, TOPS -28%, SINO -26%, GNK -24%, PXS -23%, EGLE -22%, DSX -15%, NMM -5%.
- DryShips lit the fuse when it announced a share sale to raise $20M, but and Diana Containerships and Diana Shipping chimed in with quarterly earnings that missed expectations (I, II).
- "It's people coming to their senses," says Stifel's Benjamin Nolan, who covers maritime sectors. "These kinds of extreme rallies that aren’t entirely linked to fundamentals don't tend to be permanent."
- Investors likely also were worried that other companies would follow DRYS' lead with their own stock offerings.
- "Given the sheer size of the volume and the continued (relentless) pricing movements, we believe momentum based algorithms (quant trading) are likely a very significant factor/catalyst at this point," says Wells Fargo's Michael Webber.
- But Webber also says the troubled sector provides an opportunity for longer-term investors once the market settles down.
Thu, Nov. 17, 10:54 AM
- DryShips (DRYS -60.6%) plunges after resuming trading following a halt and announcing an offering earlier this morning, and many of the other shippers are reacting with sharp reversals.
- Among DRYS shipping peers: GLBS -46%, ESEA -36%, SHIP -33%, EGLE -18%, GNK -16%, DSX -11%, DCIX -10%, SALT -9%, SB -2%, GOGL -1%.
Thu, Nov. 17, 9:45 AM
- DryShips (NASDAQ:DRYS) is halted at the open after announcing a $20M direct offering, with the potential to receive total proceeds of up to $100M if all preferred warrants are exercised; shares will resume trading at 10:30.
- Other shippers continue to show strong gains at the open despite the DRYS offering: SINO +99%, DCIX +47%, ESEA +26%, GLBS +21%, SB +14%, SHIP +11%, SALT +3%, DSX +2%, GNK +1%, EGLE +1%, GOGL +1%, SFL +1%.
Thu, Nov. 17, 9:20 AM
- Gainers: RLOG +121%. SINO +99%. GSL +94%. DCIX +32%. NMM +32%. ESEA +24%. TOPS +22%. WNR +22%. NM +22%. NAO +19%. SB +18%. ANW +17%. PANL +16%. SHIP +12%. NTAP +12%. HAIN +11%. GLBS +11%. UAM +11%. GURE +10%. PLCE +8%. NNA 8%. BBY 8%. INCY 6%. RCON 6%. PLUG 6%. GNK 6%. ENDP 6%.
- Losers: LEI -26%. VUZI -18%. SPP -18%. NVTA -14%. FSLR -12%. ZX -10%. TEGP -10%. SSI -9%. STEM -8%. FOXF -8%. TTMI -7%. PFGC -6%.
Wed, Nov. 16, 12:27 PM
- DryShips (NASDAQ:DRYS) remains halted after soaring 1,500% since the Nov. 8 election and soaring another 40%-plus in the premarket; meanwhile, other shipping stocks continue to race higher, with some halted during the day.
- Until last week's Trump election victory, it had been a dismal year for dry bulk shippers, with weak Chinese demand for commodities punishing the industry to the point that companies were forced to idle ships and several operators filed for bankruptcy protection; DRYS shares had sunk 98% YTD by the close on election day.
- A popular view is that DRYS’ surge is the work of a short squeeze, but Ihor Dusaniwsky, head of research at S3 Partners, says that with only ~1M shares outstanding, there are not enough to go around for short sellers to borrow; he says the rally is as simple as sudden, huge demand running into limited supply.
- Wells Fargo's Michael Webber cautions that the huge rally in dry bulk and container stocks may not last must longer, as no fundamental move has supported the degree of gains.
- Related tickers: GLBS +179%, DCIX +164%, SINO +92%, ESEA +44%, SHIP +44%, GNK +28%, SB +23%, NMM +13%, EGLE +11%, GOGL +8%, DSX +7%, SALT +2%.
Wed, Nov. 16, 10:02 AM
- It's another dizzying run for shipping stocks. While the U.S. election was the spark to ignite the sector initially last week, a short squeeze and speculation has overrun any sort of fundamental analysis of the Trump factor.
- Early gainers include Global Ship Lease (GSL +42.9%), Diana Containerships (DCIX +104.4%), Seanergy Maritime Holdings (SHIP +57.3%), Danaos Corporation (DAC +26.9%), Navios Maritime Holdings (NM +15.1%), Safe Bulkers (SB +5.5%), Genco Shipping & Trading (GNK +15%), Star Bulk Carriers (SBLK +4.7%) and Nordic American Offshore (NAO +10.7%).
- The Nasdaq is having a hard time keeping up it with it all. There are volatility halts in place for GLBS, DCIX and SHIP already.
- Previously: Dryships halted in premarket action; up another 55% (Nov. 16)
Wed, Nov. 16, 9:17 AM
- Gainers: GLBS +58%. SINO +45%. GSL +39%. DCIX +39%. STEM +30%. ESEA +22%. SHIP +20%. NM +19%. DAC +19%. ORIG +19%. LEI +18%. TOPS +16%. NMM +18%. SB +15%. SBLK +11%. DSX +9%. JKS +9%. GNK +9%. YRD +7%. TGT +8%. GOGL 8%. EGLE 6%. SAEX 7%. RPRX 7%. NNA 7%. HTBX 7%. NAK 6%.
- Losers: PDLI -15%. LNTH -11%. FLXN -9%. AQMS -7%. VSAT -6%. SID -5%.
Tue, Nov. 15, 9:17 AM
Thu, Nov. 10, 12:43 PM
- Gainers: TUBE +81%. DRYS +61%. ECPG +29%. EBIO +26%. WAC +19%. GNK +19%. FONR +19%. KRNT +19%. MVIS +18%. CLMT +16%. OMER +18%. GSM +17%. INVE +16%. ZLTQ +16%. SHAK +17%. CLCD +15%. TDW +15%. NEOS +14%. SODA +15%. TRVN +14%.
- Losers: ANTH -36%. PMTS -34%. CAG -29%. AVID -27%. RPD -25%. SUNW -22%. HLIT -20%. NVAX -18%. URRE -17%. TROV -16%. GOL -16%. DPRX -16%. RTK -16%. CRMD -16%. HSGX -15%. WUBA -15%. SGNL -15%. QNST -15%. CZZ -13%.
Wed, Nov. 2, 4:51 PM
Thu, Oct. 13, 11:41 AM| Thu, Oct. 13, 11:41 AM | 5 Comments
Thu, Oct. 6, 12:48 PM
Wed, Sep. 28, 12:48 PM
Sun, Sep. 11, 9:29 AM
- The world's largest container shipping firm is seeing a short-term rise in freight rates and an inflow of new clients after the collapse of Hanjin Shipping (OTC:HNJSF).
- "There's no doubt that we're seeing a reaction in the rate market," said Klaus Rud Sejling, the executive in charge of Maersk Line's (OTCPK:AMKAF) east-west network. "In the short term, the effect is positive... The question is, what will happen with rates in the longer term."
- Related tickers: SHIP, EGLE, GNK, SINO, DRYS, NM, SBLK, DCIX, BALT, SFL, KEX, SB, SALT, DSX, GOGL, MATX, EURN, NNA
Fri, Sep. 9, 3:57 AM
- Korean Air Lines, the biggest shareholder in Hanjin Shipping (OTC:HNJSF), has delayed a decision on a funding plan for the troubled company for a second time, adding to the uncertainty of around $14B of cargo stranded at sea.
- With Hanjin's future in doubt, carriers have announced they will hike container freight rates by as much as 50% beginning next month as retailers scramble to secure shipping ahead of the peak year-end holiday season.
- Related tickers: SHIP, EGLE, GNK, SINO, DRYS, NM, SBLK, DCIX, BALT, SFL, KEX, SB, SALT, DSX, GOGL, MATX, EURN, NNA, UPS, FDX
- ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, FXD, RHS, FDIS, FSTA, RCD, PMR, JHMC, JHMS, CNSF, CNDF
Fri, Aug. 26, 12:45 PM