Dry Bits

Ahoy there!

Top & Bottom 5 day performances:  ULTR +10.13%, DRYS +9.01%, TBSI +6.78% // FREE -4.34%, BHO -6.25%, OCNF -11.49%.  BDI closed the week 8.14% higher.  ULTR continues to outperform peers for last 30 days.

Dry News: HSN; Two new flotations hit the New York Stock Market this week, the first such shipping company initial public share offers since the crisis in bulk and container shipping started to bite. Baltic Trading, a dry bulk company whose details we published in February, and a new oil tanker group, Crude Carriers Corporation, a Marshall Islands registered Greek initiative, both achieved their launch targets but prices were at the bottom end of their estimates. “The price is at the low end but Peter G has a good name in the market and there is an appetite for this type of deal.”  When do we ask why did GNK spin?  Can this be good for existing shareholders?  How much money in commissions did this generate?  I am confident it is understood who benefits from commissions.  

Worldyards; “We have to acknowledge that in the iron ore arena, Japan used consolidated buying and benchmark system to have historically obtained much more favourable prices than China during decades of purchasing. By contrast, China has over a 100 firms licensed to import iron ore, and such companies can sell their cargo to mills which do not have license for direct purchases. Iron ore negotiations have become a national pastime in China when many engage in the national soul searching along the lines of, “If we are buying 60% of the world output, why don’t we have any pricing power?” Most Chinese openly ridiculed those involved in the negotiations.” I sensed a little bit of jealousy here, and I think China has 102 licensed ore importers.   “So, instead of arguing the pros and cons of which pricing alternative (spot or benchmark), the message may be more appropriately focused on enforcement and on reducing the number of players. An undisciplined grouping of Chinese buyers adds tremendous complexity, hence it shall is not be mistaken with bargaining power by the sellers, particularly when compared to the united front that Japanese buyers displayed for decades to hammer down ore prices.”  There it is again.  I say the Chinese are jealous of Japan and should consider telling the miners they want whatever Japan gets, plus a full page ad in the Wall Street Journal proclaiming China ore negotiators are the best in the world. 

TradeWinds; Stamatis Molaris is returning to Wall Street with a $270m IPO for a dry-cargo and tanker owner.  I remember (Quintana/Excel) when this dude packed his bags, Ski told readers that we would meet him again.  His name alone dictates employment in Maritime ventures.  I expect him to do well.  Mike should have named Bessie’s bro Hondo something more marine sounding, like STOMATIS.  Pure AlphaMale!  

Fixtures/Relets:

Volume 27/146 last week 18/169.

NAVIOS HAPPINESS/ IRON ORE  ECSA/TUBARAO > QINGDAO USD29 SCALE730000C CARGILL

NAVIOS ALTAIR/ COAL HAMPTON ROADS > PORT TALBOT USD22.5 5 DS C CORUS

NAVIOS FANTASTIKS/ QINGDAO > CHINA VIA WEST AUSSIE USD 23,100 RIO TINTO

GENCO SUCCESS/ USG > CONT USD 43,500 DAILY ENERGY

NAVIOS ORBITER/ RIZHAO > CHINA VIA W.AUSSIE USD 30,000 YANGTZE NAVIGATION

NAVIOS ORION/ C.PASSERO > SKAW-CPASS 2 LL 1ST PASCAGOULA/MOROCCO USD 35,000 KLAVE

Good Fortunes

Comments

[brewer]

This is probably a bit of semantics, but is ULtR really a bulk name any more? In recent months they have sold off two of their OBOs, leaving them with an elderly OBO and an equally old Cape. The rest of their operations are the large Hidrovia port/barge operation, a growing fleet of PSVs, and several small product tankers (with rumors of a recent puchase of a late model panamax product tanker). I would not be surprised to see them liquidate the last two actual bulkers they own in the next year. So is this a bulk name any more? Looks more like a play on the fast growing South American economy/commodity export industry.

Full disclosure: I am long the equity.