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The two top performers among the gainers are Star Bulk Carriers and Safe Bulker. Star Bulk is trading up 10% at $11.15 per share Safe Bulker is up 13.23% to $2.14 per share on Tuesday.
Analyst Fotis Giannakoulis listed his reasons for upgrading the ratings for shipping stocks. Giannakoulis sees the rise of commodity prices, high demand from China and a muted fleet supply gradually improving the market. He also believes that the operational and financial leverage that shipping companies have will be beneficial this year.
The operating costs are often fixed for shipping companies, so any significant increase in revenue of operation will flow into the bottom line.
Another sign for the upgrades can come from Star Bulk, and several other bulk shipping companies are buying more carriers. Star Bulk announced three weeks ago that their acquisition of two modern Kamsarmax drybulk vessels just entered a definitive agreement. This move shows that the company is in a strong liquidity position and the low-cost structure has allowed it to expand its fleet further.
The surge driven by an analyst note might be the beginning of a recovery in the shipping market, but it is not uncommon for the growth to be a short-term effect. For the long-term, it not only depends on the demand and price of the commodity, but also new trade policies that might happen under President Trump.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Shipping Stocks Sail Away After Morgan Staley Issues Upgrades
Shipping stocks across the board just received a series of upgrades from Morgan Stanley (MS - Free Report) . Gainers include Star Bulk Carriers (SBLK - Free Report) , Safe Bulkers (SB - Free Report) , Genco Shipping &Trading (GNK - Free Report) , DryShips , Golden Ocean Group (GOGL - Free Report) , Scorpio Tankers (STNG - Free Report) , DHT Holdings (DHT - Free Report) , Global Ship Lease (GSL - Free Report) , Seaspan , Navios Maritime Partners (NMM - Free Report) and Eagle Bulk Shipping .
The two top performers among the gainers are Star Bulk Carriers and Safe Bulker. Star Bulk is trading up 10% at $11.15 per share Safe Bulker is up 13.23% to $2.14 per share on Tuesday.
Analyst Fotis Giannakoulis listed his reasons for upgrading the ratings for shipping stocks. Giannakoulis sees the rise of commodity prices, high demand from China and a muted fleet supply gradually improving the market. He also believes that the operational and financial leverage that shipping companies have will be beneficial this year.
The operating costs are often fixed for shipping companies, so any significant increase in revenue of operation will flow into the bottom line.
Another sign for the upgrades can come from Star Bulk, and several other bulk shipping companies are buying more carriers. Star Bulk announced three weeks ago that their acquisition of two modern Kamsarmax drybulk vessels just entered a definitive agreement. This move shows that the company is in a strong liquidity position and the low-cost structure has allowed it to expand its fleet further.
The surge driven by an analyst note might be the beginning of a recovery in the shipping market, but it is not uncommon for the growth to be a short-term effect. For the long-term, it not only depends on the demand and price of the commodity, but also new trade policies that might happen under President Trump.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere
1 billion iPhones in 10 years but a new breakthrough is expected to generate more
than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging
phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>