Back to top

Analyst Blog

We maintain our long-term Neutral recommendation on Excel Maritime Carriers Ltd. ahead of its third quarter fiscal 2012 financial results. The company has delayed to declare its third quarter results. Meanwhile, the stock price has plummeted over 80% over the last year. This is primarily due to the bleak prospects of the drybulk shipping industry. This sector has been facing serious challenges ever since the spot vessel rates collapsed drastically. Currently, Excel Maritime holds a short-term Zacks #3 Rank (Hold) on the stock.


We attribute the dismal condition to a sheer increase in the number of vessels under operation resulting in intense price competition. The spot rates of drybulk vessels have fallen to such a low level that even surging demand for commodities in the Asian markets have failed to offset the losses incurred by the vessel owners. Consequently, voyage revenue declined significantly. However, we believe this low level of valuation may provide a cushion for further downslide of the stock price.

The drybulk shipping industry is going through difficult times. The financial condition of this industry is even worse than what it was before the recession. This is mainly attributable to the foolhardy decision taken by the shipping companies in 2008, just before the beginning of the worldwide recession. Due to a lack of near-term foresight, most of the vessel operators had ordered a large number of newbuild ships in several docks.

Excel Maritime operates in a highly competitive drybulk shipping industry. The company’s main competitors are Diana Shipping Inc. (DSX - Snapshot Report), Genco Shipping & Trading Ltd. , and DryShips Inc. (DRYS - Analyst Report).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%