Douche bank had hold in Aug with $5 target when stock was at 3.25
Deutsche Bank downgraded Genco Shipping (NYSE: GNK) from Hold to Sell with a price target of $2.00.
The firm comments, "We are downgrading GNK to Sell-rated from Hold-rated as shares have rallied 16.7% since Q2 (vs. the S&P 500’s 7.0% gain) and asset values have declined. However, our current NAV estimate is negative $6/share, down from negative $5/share in August. While GNK has ample liquidity to weather a weak 2013, loan repayment waivers expire in 2014 and unless the market materially recovers, liquidity risk will once again return. We expect the current support for GNK’s share price to dissipate as we move through Q4 and rates once again decline into 2013. We attribute much of the recent share price improvement from rates recovering off of trough levels, and expect to see Q1 2013 spot-market weakness, particularly in the Cape sector."
They are betting on the BDI going down in 2013, I see different. I guess this is why we have markets. My feeling is if the BDI does suffer one more year, I would imagine 2014 would be a recovery year and they should get financing or more liquidity - we will see. In this case, it may be a good idea to own dsx also.