Category: Transportation

Are Shipping Stocks Shipwrecked
by the U.S. and China Disputes?

When the news broke in August about the 10% tariff on $300 billion of Chinese goods, shipping stocks saw a downturn. Unfortunately, small & microcap stocks took the biggest hit due to their size and structure. Most of these companies are not equipped to take a hit that large. Between the dispute among China and the US, the stock prices across the industry fluctuated. Although this sounds all bad, that is not the case. Not all shipping stocks are the same and many cater to different clients outside of China.

Wednesday, August 21, 2019

Great Lakes Dredge & Dock (GLDD)

Positive Outlook Drives Up Price Target

Great Lakes Dredge & Dock is a marine and environmental infrastructure contractor, and the largest dredging company in the United States. Headquartered in suburban Chicago, the company provides port expansion and maintenance, coastal restoration, river dredging and environmental restoration for public and private entities worldwide. In June 2019, the Environmental & industrial (E&I) business was sold for $17.5 million in cash and the company is now pure play on the dredging market.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• 2H2019 Backlog rebound remains likely.  Since the start of 3Q2019, total low bids equal ~$91 million and most of the awards should be announced shortly. ~$110 million of low bids not awarded in 2Q2019 includes $93 million of option work in Jacksonville.
• Introducing 2020 EBITDA estimate of $140.5 million, up from $131.2 million in 2019.  The outlook into next year appears positive with continued high bidding activity on port/channel deepening projects and…
  

  
  
  

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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Monday, August 19, 2019

Euroseas (ESEA)

Acquisition and Refinancing Are Positives

Euroseas (ESEA) operates a fleet of 15 container ships (14 feeders and one intermediate) in the container shipping markets following the closing of a four feeder container vessel acquisition in early August 2019. Euroseas’ operations are managed by Eurobulk Ltd., an affiliated ship management company, and Eurobulk FE (Far East) Ltd, which are responsible for the day-to-day commercial and technical management and operation of the fleet. Euroseas employs the fleet on mainly on spot and time period charters.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Quarterly results stabilizing.  RExcluding drydock expenses, adjusted 2Q2019 EBITDA was $1.7 million was below our estimate of $2.1 million, mainly due to slightly lower time equivalent (TCE) rates and higher opex.
• Fine-tuning 2019 EBITDA estimate.   To incorporate lower 2Q2019 results and other events, like the preferred stock redemption and acquisition, our new adjusted EBITDA estimate of $9.3 mill…
  

  
  
  

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*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Friday, August 16, 2019

EuroDry (EDRY)

Another Solid Quarter – Promising 2H2019 Outlook.

EuroDry operates in the dry bulk shipping markets. EuroDry’s operations are managed by Eurobulk Ltd., an affiliated ship management company, and Eurobulk FE (Far East) Ltd, which are responsible for the day-to-day commercial and technical management and operation of the fleet. EuroDry employs the fleet on spot and period charters and through pool arrangements.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Another solid quarter as pure dry bulk market play.  Reported 2Q2019 EBITDA was $1.8 million and adjusted EBITDA of $2.7 million excluding drydock expenses was above our estimate of $2.3 million mainly due to higher than expected TCE rates partially offset by slightly higher opex. 2Q2019 TCE revenue of $6.3 million was slightly above expectations by $0.1 million due to higher than expected shipping days of 628.
• Adjusting our 2019 EBITDA estimate to reflect 2Q2019 results and current dry bulk market environment.  We have fine-tuned our forecasts and there is no change in adjusted EBITDA estimate of $10.4 million. Given the rapid…
  

  
  
  

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*Analyst
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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Will owning an Electric Vehicle finally be convenient?

(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section) 

Electric vehicles offer transportation without the need for gasoline, lessening the impact it has on the environment. They have been gaining popularity because of this but have run into many problems along the way. The biggest participant in the U.S. market right now is Tesla. They have ruled the industry for some time, but new competition is here, and more is on its way. Lack of convenience is causing problems for all parties involved, leaving the main players scrambling to come up with solutions.

Wednesday, August 14, 2019

Pangaea Logistics (PANL)

Lower 2Q2019 Shipping Days, But Rebound Ahead

Pangaea Logistics Solutions Ltd and its subsidiaries provide seaborne drybulk transportation services. It transports drybulk cargos including grains, coal, iron, ore, pig, iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The firm’s services include cargo loading, cargo discharge, vessel chartering, voyage planning and technical vessel management.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Market turmoil triggered a retrenchment but consistent business model delivered solid results.  2Q2019 results were below our estimate due to lower shipping days, but 2Q2019 EBITDA of $11.3 million was higher than 1Q2019 EBITDA of $8.6 million and TCE rates of $12,933/day were above our estimate and 1Q2019 levels. The business model continues to deliver outperformance and the TCE premium to the BPI/BSI market indices was $4,268/day, close to 1Q2019 premium of $4,869/day and well above $2,801/day in 4Q2018.
• To reflect the 2Q2019 variance, we are moving our 2019 EBITDA estimate to $55.5 million in 2019 (from $60.9 million). Estimate is based on…
  

  
  
  

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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Tuesday, August 13, 2019

Pyxis Tankers (PXS)

On the Right Track for 2H2019 Rebound

Pyxis Tankers Inc is a US-based international maritime transportation company which focuses on the product tanker sector. It owns a fleet which comprises of six double hull product tankers, which are employed under a mix of short- and medium-term time charters and spot charters.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Some positive traction in 2Q2019.  Adjusted 2Q2019 EBITDA of $1.3 million was in line with our estimate and above 1Q2019 EBITDA of $0.5 million, mainly due to better performance from the MR tankers. Versus 1Q2019, TCE revenue ($0.6 million) and slightly lower opex slightly lower G&A expenses ($0.1 million) were the main variances.  
   
  
• Adjusted 2019 estimate reflects expected 2H2019 recovery.  Our new 2019 EBITDA estimate is $5.8 million, which incorporates quarterly results and TCE rates of…
  
  
  

  
  
  

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Friday, August 9, 2019

Genco Shipping (GNK)

A Tough Quarter But Rebound Ahead

Genco Shipping & Trading Limited, incorporated on September 27, 2004, transports iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes through the ownership and operation of drybulk carrier vessels.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• 2Q2019 EBITDA of $5.4 million was well below expectations. Lower TCE revenue of $5.8 million and higher opex of $2.6 million were the main drivers of the shortfall.
• Lowering 2019 EBITDA estimate to $79.8 million (from $102.4 million) to reflect the
  2Q2019 negative variance, 3Q2019 forward cover, and updated dry dock data. 2019
  TCE rate estimate is $11,372/day, and 65% of available…
  
  
  

  
  
  

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*Analyst
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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Thursday, August 8, 2019

Orion Group Holdings (ORN)

A Construction Award Bolsters Robust Outlook

Orion Group Holdings Inc is a US-based company which provides solutions in marine construction, design and specialty services both on and off the water in the continental US, Alaska, Canada, and the Caribbean Basin.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Another construction award. A $26 million award for concrete related work on a 45-story residential tower in Austin is another positive. The work should begin in 4Q2019 and run about 19 months. The larger and longer contract improves the mix and is positive for the construction outlook.
• Pickup expected with large project on the horizon. About $1.3 billion of bids remain outstanding so…
  
  
  

  
  
  

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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.