If the solar stocks can do it so cann the dry shippers
FREESEAS a once leader in the industry
The stock has been on huge run
Most solar stock have had a huge rally over the last 2 years some are up 800% -100%+
Get in now for the 2 year recovery
Shipyards, mostly in China, South Korea and Japan, built enough extra capacity since 2008 to carry about three years' worth of western European iron-ore imports
Rates for Panamaxes, the largest to navigate the Panama Canal, averaged $US7770 since the start of the year. Earnings are forecast to rise to $US12,000 in 2014, compared with a break-even level of $US11,300.
Supramaxes, the largest dry-bulk vessels equipped with cranes to move cargo, will earn $US12,000 in 2014. They need $US10,500 to break even. Rates for Handysizes, the smallest vessels in the fleet, will average $US9800. Forward freight agreements are at $US8081 and the carriers need $US9300 to be profitable.
The anticipated rally in rates depends on China because the country's imports represent 38 per cent of all iron-ore, coal and grain shipments. Japan, the second-largest destination, accounts for 13 per cent of cargo demand.
China's $US8.23 trillion economy will expand 7.4 per cent next year, the weakest pace in 23 years. That is still more than three times the global average. Japan's growth will slow to 1.55 per cent in 2014 from 1.9 per cent this year.
Other parts of the shipping industry are also contending with capacity gluts. The ClarkSea Index, a measure of earnings for vessels across the merchant fleet, averaged $US9259 a day this year, the lowest annual figure since at least 1990. The surplus of the largest crude tankers is the biggest since the mid-1980s, according to Fearnley Consultants AS, a research company in Oslo.
Overseas Shipholding Group, the biggest US tanker operator, sought bankruptcy protection in November, about a year after second-ranking General Maritime Corp took the same step.
The surplus in dry-bulk shipping is the biggest since at least 1986, according to London-based Clarkson, which characterises it as a record. The fleet expanded 71 per cent since 2008 as trade grew 31 per cent. Total capacity will increase 4.8 per cent next year, the least since 2003, the shipbroker predicts.
September 25, 2013
The shipping industry hauling commodities from coal to crops to iron ore is poised to return to profit for the first time since 2010 as the biggest capacity glut in its history diminishes.
Trade in the three largest dry-bulk cargoes will expand 10 per cent to a record 2.91 billion metric tons in 2014, according to ACM Shipping Group, a listed shipbroker.
Rates will exceed owners' break-even levels in 2014 for each of the four main vessel classes, according to analyst estimates. Investors can profit by buying freight swaps, which are mostly trading below the analysts' forecasts.
The industry is emerging from its largest-ever glut after record rates five years ago spurred owners to order an unprecedented number of vessels. Shipyards have built about 4300 carriers since then.
Deliveries are now slowing after earnings that fell as much as 84 per cent since 2008 curbed orders.
''We're starting on the path to recovery,'' said Erik Folkeson, an analyst at Swedbank First Securities in Oslo, whose recommendations on the shares of shipping companies returned 37 per cent in the past two years. ''Fleet utilisation will tighten, and that's reflected in higher earnings.''
The Baltic Dry Index, a measure of freight costs, almost tripled to 1947 points this year, according to the Baltic Exchange. Rates for iron ore-carrying Capesizes led the surge, jumping more than sevenfold to $US38,397 a day as China bought record amounts of the raw material used to make steel.
Shares of Nippon Yusen KK, the largest owner of the vessels, rose 57 per cent in Tokyo this year. They will advance another 4.3 per cent in 12 months. The Bloomberg Dry Ships Index of 14 transport companies added 32 per cent in 2013.
Analysts have also predicted that the company will return to good financial shape and will post profits in 2014 and have estimated EPS of around 23 cents. The trend in the Baltic Dry Index also signifies that the stock may enter into a long term rally.
Posted about 1 hour ago
Dallas, Texas, 09/25/2013 DryShips Inc. (NASDAQ:DRYS) is an Athens, Greece based dry bulk shipping company. The company was incorporated in the year 2004 to operate its drybulk carriers worldwide. The company’s dryships vessels carry cargoes of many companies in different trade routes. DryShips presently transport wide range of minerals and steel products from one country to another country using its several multi trade routes. DryShips as of now own 42 dry bulk carriers along with 10 drill rigs with the help of its majority owned subsidiary. The company is listed on NASDAQ and trades under the symbol DRYS.
Since the last financial crisis of 2008, DryShips has encountered a huge amount of loss. In the last 5 years, the company’s shares lost 95% of its value. The company just before the financial crisis made some huge capital investments and also increased its number of fleets. However, after a long span of five years, the company seems to be recovering from the crisis.
According to several experts, the company has sold a part of its assets to gain back its economic volatility. DryShips went through a series of liquidity and solvency crunch problems earlier but now such issues are getting disappeared slowly. At present, the company has a cash balance of $380 million against $3.3 billion debt. The debt figures are still high against the existing cash balances, however, situations have improved. Moreover, the company officials are much confident about its future earnings. The company’s earnings per share have substantially increased 23 cents against a loss of 26 cents earlier the same time this year. Analysts have also predicted that the company will return to good financial shape and will post profits in 2014 and have estimated EPS of around 23 cents. The trend in the Baltic Dry Index also signifies that the stock may enter into a long term rally.
Berry Plastics sell-off on guidance cut overdone, says Citigroup
Wed, Sep 18, 2013 6:42 AM EDT
Citigroup views yesterday's pullback in shares of Berry Plastics after the company lowered its Q4 EBITDA outlook as overdone. Citi sees an attractive buying opportunity at current levels and reiterates a Buy rating on Berry despite lowering its price target for shares to $28 from $30.
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