DryShips and Genco to Face Falling Panamax Shipping Rates

Five Star Equities Provides Stock Research on DryShips and Genco

Marketwired

NEW YORK, NY--(Marketwire -07/13/12)- After showing some strong gains in the first quarter the shipping industry has fallen sharply since then. The Guggenheim Shipping ETF (SEA) has fallen over 14 percent over the last three months. The recent rally in Panamax shipping rates could be coming to an end as China begins to hoard record coal stocks. Five Star Equities examines the outlook for companies in the Shipping Industry and provides equity research on DryShips Inc. (DRYS) and Genco Shipping & Trading Ltd. (GNK).

Access to the full company reports can be found at:
www.FiveStarEquities.com/DRYS
www.FiveStarEquities.com/GNK

Data from the China Coal Transport & Distribution and SteelHome shows that utilities in China are currently holding 91 million metric tons of coal, more than 90 percent of capacity. Panamax vessels carry more coal than any other commodity. According to the world's largest shipbroker, Clarkson Plc, the Panamax fleet will expand nearly triple the pace of cargoes in 2012.

"Chinese coal demand is so low right now," said Jeffrey Landsberg, managing director of Commodore Research & Consulting. "The Panamax market will be under pressure throughout this quarter, first and foremost due to a significant oversupply of vessels."

Five Star Equities releases regular market updates on the Shipping Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.

DryShips Inc. owns a fleet of 47 drybulk carriers, including 29 Panamax vessels. Their capesize and Panamax dry bulk carriers carry predominantly coal and iron ore for energy and steel production. For the first quarter of 2012, the company reported a net loss of $47.5 million, or $0.12 basic and diluted loss per share. After a strong start to the year shares of DryShips have fallen over 37 percent in the last three months.

Genco Shipping & Trading Ltd. transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. The company recorded net loss attributable to Genco for the first quarter of 2012 of $33.1 million, or $0.87 basic and diluted loss per share. Comparatively, for the three months ended March 31, 2011 net income attributable to Genco was $13.4 million, or $0.38 basic and diluted earnings per share.

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:
www.FiveStarEquities.com/disclaimer

Contact:

Five Star Equities
Email Contact

Rates

View Comments (0)