Genco Shipping: A High Yielding Solid Buy

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3.63K Followers

Summary

  • Genco stock has gained about 100% in the previous 52-week period and almost 50% YTD.
  • The company has an almost 11% dividend yield, revenue growth outpacing the shipping rate hikes, and a strong balance sheet.
  • I rate the stock as a strong buy due to its ability to carry out strategic plans of efficiently generating cash flow for fueling its growth & distributions.

Logistics Team Walking Together in Inland Port

xavierarnau/E+ via Getty Images

Investment Thesis

Genco Shipping & Trading Limited (NYSE:GNK) operates in the maritime industry, which experienced a meteoritic rate rise in 2021, inflating the revenues of the whole industry, including the Capital Link Drybulk Index (CLDBI) that contains Genco.

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"A fade is a contrarian investment strategy that involves trading against the prevailing trend."  We look at low-cap stocks that are not covered by mainstream investment firms in search of early opportunities spanning a variety of investment philosophies. The best opportunities are found when looking where others won't. Let us know if you want us to cover any specific tickers and we'll be sure to take a look! Formerly Moonshot Equity Analysis.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.

Business relationship disclosure: This article was researched and written by Waleed M. Tariq.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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