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Eagle Bulk Shipping, Inc. Message Board

  • tencjedd tencjedd Apr 3, 2013 2:44 PM Flag

    Comments from Wells Fargo

    Webber’s concern follows less than two weeks after he issued a warning about the health of some Wall Street bulker owners.

    In a note entitled “Dry Bulk: Hold Your Horses” Webber said Excel Maritime, Genco, Eagle Bulk and DryShips, some of the best performing stocks in the sector this year, still face further restructuring challenges.

    “We actually think this trade may be punctuated by a Chapter 11 filing as opposed to a return to broad-based profitability, and while this idea that multiple players in the dry bulk space won’t survive is not new, what is new is that the market seems to have forgotten it,” the analyst said.

    Webber notes Excel, Eagle and Genco are trading up around 74% this year, “despite significant, and in some cases immediate”, balance sheet or bankruptcy risk.

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    • the rest of the story so folks can make conclusion with all the facts not just a biased snippet.

      Excel Maritime has been working with Miller Buckfire on a restructuring having secured some debt relief until the end of 2013 and raised some cash from the market.

      Webber says the process is difficult to read but sees “few, if any” positive outcomes for common equity holders.

      Genco is likely to need some debt relief by the end of next year and given its huge spot exposure may break some covenants when they are reactivated at the beginning of 2014, the analyst notes.

      A further round of restructuring talks for the owner could begin as early as the middle of this year, he suggests.

      Webber says Eagle Bulk is in better shape than Genco and Excel given its longer debt runway.

      "That said, while that runway is a modest plus for EGLE on a relative basis, we think the dry bulk recession could persist well into 2015, with that race against EGLE’s grace period remaining the biggest long-term variable for the stock,” he added.

      • 1 Reply to up1.down2
      • I've read your comments a few times. You don't really have any idea what you are talking about when it comes to EGLE or the industry at all. You must just have a long position put on recently based on hope and hype and now you are googling furiously to find anything that you THINK helps your bull case. You are failing. You lie about trades and are some sort of wacko.

    • +1 on michael weber's analysis. Right up to the last word.

    • “We actually think this trade may be punctuated by a Chapter 11 filing as opposed to a return to broad-based profitability, and while this idea that multiple players in the dry bulk space won’t survive is not new, what is new is that the market seems to have forgotten it,” the analyst said.

      Webber notes Excel, Eagle and Genco are trading up around 74% this year, “despite significant, and in some cases immediate”, balance sheet or bankruptcy risk. tencjedd

      Ten, and still investors do not seem to listen to these facts. Amazing....Day traders seem to ride the up and down swings, however long term investors should be very cautious. All of the drys were down today and of course EGLE led the pack....Really sad to see a once good company go aground like this.

 
EGLE
1.17+0.03(+2.63%)Aug 28 4:00 PMEDT

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