Eagle Bulk Shipping, Inc. (NASDAQ:EGLE)

Sector bottom.

shipping will come back

Dry bulk sector bottom, Reverse split, low float stock now.

The debt deal was just a way for the management company to continue collecting fees while the bank, RBS, will charge higher interest and "sweep" all profits, while kicking the debt load down the road.

My gut says that overcapacity really has doomed this company. We are in the time period of oversupply-> cheap labor getting cheaper, too many ships and bigger superships on the horizon. This company has had problems with creditors disagreeing with management about legal terms of the debts. Debts are huge. Revenues and margins are shrinking.
Here is another good blog recently about this company:
http://caps.fool.com/Blogs/eagle-shipping-egle-headed/717995

I used to be a believer that this was a value deal, but I think I have been fairly proven wrong. It is really just a weak business in a bad neighborhood of industry.

Eagle is going bankrupt. They owe $74m by June 30--$28m in debt, $36m in interest, and $9m to raise their cash reserves to meet their lender's requirements. They aren't going to be able to generate this kind of money. They only have three quarters to raise it--Q4 2011, Q1 & Q2 2012. They only made $26m in Q3 2011. Even if they replicated those numbers, they would only come up with $78m by their June 30 deadline. Since then, Supramax shipping rates have fallen from around $14,000/day to under $7,000/day. EGLE can't possibly come up with the $74m they owe in this new rate environment. And they know it, too, which is why they didn't come out with their annual report on March 2, like they always do. They're buying time before they announce their coming bankruptcy, hoping they can find a new investor to rescue them.

Extremely low valuation in a highly volatile industry. Risky, but high upside.

shipments

Downtrodden....will return....bargain

Eagle bulk has relatively smaller ships than other bulk shipping company and more diverse than others. It has a stronger foundamental than the giant DRYS, and the charts looks bottom out and in a uptrend direction.

Low price now because of korea. That will pass and price will go up

They have been beaten up by diminished coal shipments from Australia. Another one of teir customers filed bankruptcy. They have worked out an agreement with that company

At some point down the road, shipping will pick up again.

for now gas is going up in price but ships will still need to recover and we will start to see the price increase for products to make up for shipping costs

A 26% dividend can't be sustainable...

If Korea Lines pays their bills to Eagle, I see no problems.
Consensus is that shipping rates have hit bottom and are
on their way up.
Eagle has the optimum size of ship and a lot of them,
and will survive quite nicely.
That is my opinion.

Rebound in world economy

just too far below book value

Attractive valuation and the price seems to have been battered a bit more than its peers. The fact most of its capacity is spoken for in long-term contracts means it feels well poised to ride out the poor economy and rally once things turn around.