I almost bought some PRGN as well. Wish I had. Anyway just to let everyone know, the BDI went up again today another 2.88%
That makes 4 up days in a row after the long losing streak.
BTW I don't mean to sound like a broken record or a cheerleader by posting the daily up moves in the BDI.
Just letting everyone know. Anything postive for the sector as a whole should be even more of a positive for SBLK.
Good points.. The Panamex class has been jumping I made a small buy of PRGN, its a long shot, but they appear poised to take advantage of the demand for smaller ships.
As the industry consolidates its business shore side, the overflow will tip out to the larger ships.
SBLK usually has a turn around time for its charters of 1.5 months. Looks to me like they have some solid relationships already established to renew the charters coming due in the 1st qtr.. Look at the 4th qtr these guys are aggressive and locking in a solid business model for employment of ships. That is what I have to go on.. Cup is half full to full with this company.
Saw it too. THX!
World population is growing and the economic cycle heating up. SBLK positioned to take afdavantage in the upturn.
Peace time imports will increase as the military puts some of its big ships to harbor.
About 500 k jobs in the US added over the last two months.
All the fundamentals point to growth.
That is good news. I have been reading new releases on a few other dry bulk shippers. The glass appeared half empty, but staring to brighten up. PRGN just book a new agreement, but had a problem receiving its payment on one of its charters.. TNK cut its dividend, the 4th qtr wasn't that good for them.
However I read this in the 3rd qtr report at SBLK
"Our fleet profile will have a new addition within the next few days with the delivery of our second new building capesize the Star Polaris. This acquisition will increase the size of our fleet to 15 vessels while enhancing our revenue. As of today, our total contracted gross revenue is $220 million and our fleet employment coverage stands at 94% for 2011 and 52% for 2012. We are currently in discussion with a number of charterers about contracting the vessels with expiring contracts on period employment. The great majority of these vessels are in the Supramax class and this market has been much less volatile then the larger size segments"
That statement was made 11/15/11 since then SBLK has deployed the Star Polaris, Star Kappa,and the Star Sigma.
I think they tipped their hat that the glass was half full at the end of the 3rd qtr.
"Despite the challenging quarter, we remain optimistic about the future of Star Bulk Carriers as we continue to make significant progress towards improving our future financial results. 11/15/11
They got a line 64 mln line of credit at lower rates, and looks like they have reduced thir interest expense.
"Simos Spyrou, Chief Financial Officer of Star Bulk, commented: "As of today, our outstanding debt amounts to $267.6 million with $1.5 million in principal repayment due for the remainder 2011 and our cash position stands at $39 million. Furthermore, our loan repayments for 2012 and 2013 are $35 million for each year. As we have no exposure to interest rate swaps, we are able to take advantage of the prevailing low interest rate environment. The increase to our operating expenses for the third quarter 2011 versus the previous quarter was mainly due to the increase in the average number of vessels, since our fleet grew from 11 to 14 vessels during this quarter. Even though our general and administrative expenses have increased in third quarter of 2011 compared to the previous quarter, they remain 14% lower compared to the same quarter in 2010"