GRIN - Castor Maritime - Cheap For A Reason

• Reflecting on disappointing share price performance following my upgrade to "speculative buy" in early August.
• Company reports respectable Q3 results highlighted by decent cash flow from operations.
• Recent weakness and stellar fleet value appreciation have resulted in the shares now trading at a more than 60% discount to net asset value.
• A host of China-related issues has impacted charter rates in recent weeks with weakness likely to continue throughout Q1. Medium-term fundamentals of the dry bulk market remain strong.
• While a trade going into anticipated strong Q4 results in late March could yield decent returns, investors looking for exposure to the dry bulk sector should rather consider dividend-paying quality names like Star Bulk Carriers, Golden Ocean Group, Eagle Bulk Shipping and Genco Shipping & Trading.

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