Safe Bulkers Inc.NYSE
Serious Danger Lurks For 'Safe' Bulkers
J Mintzmyer • 103 Comments
J Mintzmyer • 103 Comments
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, 10:16 AM
- There are broad gains again in the shipping sector off some rampant speculation and short interest sorting out. Many analysts and trade publications are having a tough time getting a handle on the frenzied action.
- Looking ahead -- the Hanjin bankruptcy factor, the rollback of sanctions, M&A and the Jones Act are considered sector wildcards.
- Notable movers include Global Ship Lease (GSL +39%), Diana Containerships (DCIX +5%), Navios Maritime Partners (NMM +12.9%), Safe Bulkers (SB +2.6%), Overseas Shipholding Group (OSG +2.7%), Gener8 Maritime (GNRT +3.5%) and Pangea Logistics Solutions (PANL +14.2%).
- Previously: Shipping stocks race higher again on sector-wide volatility (Nov. 16)
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, 10:08 AM
- Shipping stocks were already tracking higher after the U.S. election before the news last night that Korea Line Corp. nabbed Hanjin assets out of bankruptcy completely unmoored the sector.
- Most of the gainers are dry bulk carriers, not tankers. The list of rapid movers includes Seanergy Maritime Holdings (SHIP +92.7%), Diana Shipping (DSX +9.8%), Navios Maritime Holdings (NM +7.8%), Navious Maritime Partners (NMM +11.4%), Globla Ship Lease (GSL +14.4%), Eagle Bulk Shipping (EGLE +8.5%), Star Bulk Carriers (SBLK +5.1%), Safe Bulkers (SB +8.9%), Top Ships (TOPS +67.1%), Euroseas (ESEA +76.7%), Paragon Shipping (PRGNF +14.1%), Globus Maritime Limited (GLBS +68.9%), Diana Containerships (DCIX +24.5%), Rand Logistics (RLOG +8.8%).
- Previously: Shipping stocks skyrocket after Korea Line Corp. wins Hanjin assets (Nov. 15)
Mon, Oct. 31, 7:35 AM
Sun, Oct. 30, 5:30 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
Wed, Sep. 7, 12:03 PM
- Transportation stocks are solidly higher across select parts of the broad sector.
- Some technical traders think the sector is on a breakout pattern, while analysts are honed in on conference presentations where Q3 updates are being spilled.
- Notable gainers include Diana Shipping (DSX +8.3%), Scorpio Bulkers (SALT +7.5%), Safe Bulkers (SB +4.8%), and Panagaea Logistics Solutions (PANL +13.4%), Celadon Group (CGI +4.2%), USA Truck (USAK +3.5%), American Airlines Group (AAL +6.2%), United Continental (UAL +5.6%), Delta Air Lines (DAL +5.4%), CSX Corp (CSX +1.6%), and Roadrunner Transportation Systems (RRTS +2.1%), and Swift Transportation (SWFT +0.8%).
- The Dow Jones Transportation Index is up 1.11% vs. slight declines for broad market averages.
Fri, Jul. 29, 2:58 PM
- Safe Bulkers (SB -1.8%) is downgraded to Underperform from Neutral with a $1 price target at Credit Suisse, which foresees prolonged weakness in the drybulk market.
- "Management has done a tremendous job of working with its banks to refinance ~$470M which helps extend SB's runway, but at a certain point the market still needs to recover. That is the problem," analyst Gregory Lewis writes.
- The firm narrows its FY 2016 loss estimate for SB to $0.67/share from $0.70 to account for the Q2 earnings beat, but widens its 2017 loss estimate to $0.44 from $0.36 reflecting expectations for a weak market environment.
Thu, Jul. 28, 4:13 PM
Wed, Jul. 27, 5:35 PM
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