7.1 Million of Deadweight Scrapping Versus 22.2 Million Of Delivery Means New Supply Lowers Upside For Shipping Companies According To Cantor Fitzgerald Award Winning Stock Picker

• On 12:07 pm EDT, Monday October 5, 2009

67 WALL STREET, New York - October 5, 2009 - The Wall Street Transcript has just published its Transportation and Logistics Report offering a timely review of the sector to serious investors and industry executives. This 81 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: China Export Tax -- Overcapacity in the Shipping Industry -- Market Balance -- Traffic Flow -- Asia-Pacific Region -- Import/Export Traffic -- Beneficiaries of Financial Strength -- Terminating Markets -- International Business -- Tanker Companies Versus Dry Bulk Companies -- Chinese Stimulus -- Real Demand Versus Stimulus Demand -- Monitoring Potential Acquisitions -- Automobile Industry -- Demand in Emerging Countries -- Falling Demand -- Future Oversupply -- Growth of Fleets -- Pickups in Infrastructure Spending -- Navigating the Downturn -- China Government Build Imperative -- Supply & Demand -- Chinese Cell Phones -- Mobile Phone Market Growth -- Future Growth -- Stimulus Programs -- Temporary Boosts -- Inventory Stabilization -- Affects of Declines in Passenger Flights -- Capacity of Passenger Aircraft -- Improvement in Volumes -- Dry Bulk Pricing and Margins -- VLCC Owners Distressed Restructuring -- Forms of Consolidation -- Investing in Infrastructure -- Wage Concessions -- Railroad Expansion

Companies include: Diana Shipping (DSX); Star Bulk Carriers (SBLK); Nordic American Tankers (NAT); Overseas Shipholding Group (OSG); General Maritime (GMR); Federal Express (FDX); UPS (UPS); Forward Air (FWRD); Expeditors International (EXPD); Express-1; Tsakos Energy Navigation (TNP); Navios (NM); Vale (VALE); Excel (EXM); Teekay (TK); DryShips (DRYS); UTi Worldwide (UTIW); Old Dominion (ODFL); Arkansas Best (ABFS); J.B. Hunt (JBHT); Con-way (CNW); Atlas Air (AAWW); Air Transport Services Group (ATSG); Norfolk Southern (NSC); Union Pacific (UNP); CSX (CSX); Canadian National Railway (CNI); C.H. Robinson (CHRW); Kuehne and Nagel; Deutsche Post; YRC Worldwide (YRCW); Dynamex (DDMX); Ryder ®

In the following brief excerpt from just one of the 7 interviews in the 81 page report, an award winning equity analyst discusses the outlook for the sector and for investors.

Natasha Boyden is a Managing Director and Senior Research Analyst covering Marine Transportation for Cantor Fitzgerald. In 2009, Ms. Boyden was ranked as the #1 Marine Transportation Analyst by Starmine/Financial Times for 2008.

TWST: What is going on from a capacity point of view, is it as bad as the tanker market?

Ms. Boyden: Fleet growth is going to be significant, I think, and will likely outweigh demand growth. We had about 7.1 million deadweight of scrapping year-to-date in August where we had 22.2 million deadweight of delivery. As you can see, it's sort of three to one in terms of new deliveries versus scrapping. Only seven cases have been scrapped year-to-date and the most of the scrapping has actually been on the handy side sector. We had 15 new Capesize vessels delivered in July, which is a new record. I think certainly most of the 2009 orders are probably now likely to be delivered because construction has already started. Although I think we'll see postponements and delays, companies are doing what they can. The other thing is, is that China has announced plans to support its shipbuilding industry. The South Korean government has announced something similar. So clearly even if a foreign buyer cancels its lot it could be likely that China will get there and say we're going to build it anyway.

TWST: This could prolong the agony?

Ms. Boyden: Yes, it could do. As I said, I think demand on the iron ore side took everybody by surprise this year, in terms that how high the iron ore imports go into China, but again I think the question is how much of that was speculation and traders, and how much of that is real demand versus stimulus.

TWST: Are investors interested in this segment?

Ms. Boyden: Yes, absolutely. Investors are interested in some of the names. We certainly have a list of names that we would recommend and list of ones we don't, but yes they're certainly interested.

TWST: Is it hope for future recovery at this point?

Ms. Boyden: Yes, I think a lot of investors look at the dry bulk space as being kind of a leading economic indicator globally because all the basic commodities that they transport, iron ore, steel, coal, grain, all of these things I think can be an indicator of future global economic performance. So I think people are definitely interested in that from that perspective. It's interesting not so much so because it's really only one commodity and it's really driven by oil supply, global demand growth and the order book. It's a relatively simple equation versus the bulkers, which have so many more commodities.

TWST: What names do you like in the space at this point?

Ms. Boyden: We like Diana Shipping (DSX) a lot, a company that has mostly long-time charters, has very little debt, virtually no debt, and has about $230 million in cash on the balance sheet. We would expect them to probably start being very interested in acquisitions over the next quarter or two. The other name that we really like is Navios (NM). We like that because a lot of the fleet is long-time charter, but Angeliki Frangou who is the Chairman and CEO has been particularly proactive in working with the banks. NM is really one of the only names that we've seen that is getting a financing, which is also from several convertibles, stock offering deals, which have not been diluted to current shareholders versus deals that we've seen from other companies that have been highly diluted. Navios certainly has enough financing to really do what they want to do and buy distressed assets.

TWST: In terms of just distressed assets, are they looking for companies or just for ships?

Ms. Boyden: I think they would probably be looking for ships. I think there will be a lot of them out there where they are totally distressed. At this point I don't think so, I think asset values could still decline especially with current rate decline of what's being continued. But I know that they are on the lookout, as well they should be.

TWST: Right time and they've got the balance sheet to do it?

Ms. Boyden: Exactly. Both companies.

TWST: That's a good name. Is there another one or is that really the prime one on the space?

Ms. Boyden: I think those two are really are our top two picks at this point.

TWST: Who should you stay away from in this space?

Ms. Boyden: I still have concerns about Excel (EXM). They have raised cash through the CEO putting in money and then getting shares for it. They recently proposed to change their articles of incorporation to allow them to have up to a billion shares outstanding, which is very, worrying. They have older vessels. Certainly if rates turn, they're going to be suffering pretty substantially from that. They pretty much are diluting their shareholders. I think we don't like them, we have a sell on them. I think they did an offering in the 8th of September. So that's not too good. Our other concern would be, at this point, I'd say they're probably our biggest concern.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 81 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.

For Information on subscribing to The Wall Street Transcript, please call 800/246-7673

Buzz up!