elliot_mllr

Dryships Spoils the Party

I agree wholeheartedly that DRYS ought not to be viewed as a bellwether for anything except self-dealing at shareholders' expense.

SEA: Stable Returns in a Choppy Market?

Over 90% of the world's cargo travels by sea transport. Shipping stocks are volatile in the short term but provide substantial and stable dividend yields. The lines mentioned in the above comment are all charterers of SSW on long term charters. SSW's average unexpired charters for its ships on the water is 7 years, with the first expiring in 5 years. Its newbuilds are chartered for 11 years from delivery of the vessels. SSW's earnings are highly visible. It has a banking consortium of 22 banks and has adequate lines available to complete its newbuildong program. While its shares have fallen in half in the last two months or so, its earning power remains unimpaired and its dividends are stable and the yield is extraordinary at today's bargain price.

Are Shipping Stocks Sinking?

I was about to make the very same points as Messrs. Peterson and Benari, but they beat me to it. Besides all of the differences between tankers on the one hand and dry bulk carriers on the other (and container ships on the third) there is also the difference between business models (EGLE is based on charters up to 3 years, whereas FRO is largely spot). In all candor the analysis ranges between not very useful and plain wrong.
Elliot Miller