This Eagle Has Landed
Bryan Perry, editor of The 25% Cash Machine, says dry bulk shipper Eagle Shipping can keep up the smooth sailing even if the US economy weakens.
It’s time to up our exposure in the dry bulk shipping sector.
Demand for raw materials from China, India, and other Pan-Asian developing countries is driving record exports from the United States and other commodity-rich nations. That has resulted in a significant increase in the annual growth rate and demand for dry bulk commodities in the past five years and, therefore, a strong environment for freight rates.
With two-thirds of the world’s goods transported by sea, it should be no surprise that I want us to commit further to the sector following the recent correction that’s driven share prices down to their current, enticing entry points. International shipping’s vital role in global trade is not going to change soon and commodity dry bulk shipping accounts for just under 40% of all seaborne freight.
Eagle Bulk Shipping (NASDAQ: EGLE) is the largest US-based owner of Handymax dry bulk vessels. This modern fleet is comprised principally of Supramax-class vessels (50,000 to 60,000 deadweight tonnage)— the larger, more efficient design enjoying strong customer demand around the world. EGLE believes the cargo-handling flexibility and carrying capacity of the Supramax-class vessels provides a distinct competitive advantage in the dry bulk marketplace.
Eagle [recently] completed a deal for 26 new Supramax vessels at $1.1 billion.