November 07, 2009 –
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RELATED TICKERS: SBLK
, PRGN
, TBSI
Call me crazy but i have this fetish with the dry bulk shipping Industry right now. Chartering companies like SBLK and PRGN are basically just making more and more money, while their stock prices went lower and lower and lower. I just dont get it. Now I may have this wrong, please correct me if i am, but as i understand it, as long as the companies wrap up all their ships in long-term contracts (chartered ones) they do NOT have to pay for the fuel. I at least know that SBLK does this and i'm not sure about the other ones, although i'd assume so since the companies seem to work the same way. So basically their costs are independent of the price of oil, which at the moment is low, especially compared to a year and a half ago, when it was high, as were the prices of all these shipping companies. I say 'all these" because i found PRGN and TBSI in about 2 seconds when searching for other dry bulk shipping companies after falling in love with SBLK, which is still my favorite of the bunch. [more]