Entering text into the input field will update the search result below

Genco: Recovery In International Trade Brings Good Tidings

Fade The Market profile picture
Fade The Market


  • Recovery of the global economy and international trade in commodities has given a significant boost to shipping with operators making a tidy profit.
  • While the global seaborne transportation business is quite prone to volatility, it currently offers opportunities for good pickings in the short to medium term.
  • Genco, given the streamlining process that it has been undergoing recently, is particularly well-positioned to exploit arising opportunities.

Side view of dry bulk carriers cargo ship in the sea

Miro Nenchev/iStock via Getty Images

Investment Thesis

The recovery of the global economy and a strong performance by China is expected to sustain robust global commodity markets and continue fueling the surge in demand for dry-bulk commodities such as coal, iron

This article was written by

Fade The Market profile picture
"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 Mr. Stanley Kirigha, reviewed, and submitted by Mr. Waleed 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.

Recommended For You

Comments (7)

Djreef1966 profile picture
I have a feeling that GNK’s services will definitely be needed in coming months.



China is coming back online.
Rida, I always enjoy your articles. But do you have any explanation for the Marine Shippers having such as sharp price decline? GNK has gone down almost 30% in one month. Thanks.
Thanks for the comprehensive analysis. With China reiterating it's "zero" approach to Covid, the country will be hard pressed to achieve 5% growth, but the government doesn't want citizens to freeze to death so it will continue to import coal even if imports of other commodities like iron ore slow. I'm a buyer of shares at $15 or below
Good analysis. Bulk shippers kind of remind me of nat gas E&P companies at the moment, ie coining lots of money, paying down debt, upping dividends and being very cautious on capex.
Djreef1966 profile picture
“$203.2 million on debt repayments or approximately 45% of the beginning of the year debt balance, the company maintained a strong liquidity position with $120.5 million of cash while lowering net loan-to-value (LTV) to 15% as of December 31, 2021.“

Man, looking back, this was such a smart move. Testament to the quality of the management team to have this kind of foresight.
Djreef1966 profile picture
…and a big fat dividend.
Good article
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.