Today's Research Reports on DryShips and Star Bulk Carriers as Dry Bulk Shipping Market Begins to Bottom Out
NEW YORK, NY / ACCESSWIRE / April 4, 2017 / The dry bulk shipping market has bottomed out according to one Morgan Stanley analyst, and the projected target values of a select number of dry bulk shipping companies has doubled. The analyst supports the position by analyzing a number of factors:
The available supply of fleet ships will continue to shrink as regulations require the scrapping of older vessels. Fewer ships equal limited choices for companies to ship their dry goods.
The Chinese will continue to grow and repair their infrastructure, which accounts for about 25% of the country's steel demand. This is connected to the inability of China's steel industry to keep up with demand, requiring the import of steel from other countries through seaborne channels.
The combination of increased Chinese demand and a shrinking number of vessels will drive the price of dry bulk goods consistently higher over the next 2 years.
RDI Initiates Coverage on:
DryShips Inc. https://ub.rdinvesting.com/news/?ticker=DRYS
Star Bulk Carriers https://ub.rdinvesting.com/news/?ticker=SBLK
DryShips dropped 18.79% to close at $1.34 on Monday. The stock traded between $1.29 and $1.43 on volume of 54.4 million shares traded. The company announced it entered into a $226.4 million stock purchase agreement with Kalani Investments Limited. The agreement with Kalani Investments allows the sale of up to $226.4 million of DryShips common stock to Kalani over a period of 24 months, within certain limitations. All proceeds from the sale of its common stock are to be used for general corporate purposes.
Access RDI's DryShips Research Report at: https://ub.rdinvesting.com/news/?ticker=DRYS
Star Bulk Carriers ticked down 2.53% to close at $11.58 on Monday. The stock traded between $11.29 and $11.90 on volume of 406,834 shares traded. The company filed its required SEC report that showed the company posted an operating loss of $109 million, with cash equivalents on hand of under $182 million.
Access RDI's Star Bulk Carriers Research Report at:
https://ub.rdinvesting.com/news/?ticker=SBLK
Our Actionable Research on DryShips Inc. (NASDAQ: DRYS) and Star Bulk Carriers Corp. (NASDAQ: SBLK) can be downloaded free of charge at Research Driven Investing.
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SOURCE: RDInvesting.com
