ZIM - Golden Ocean Group Stock: What A Strength - More To Come

2024-04-27 05:43:59 ET

Summary

• GOGL is the only public pure-play capesize provider on the market - in theory, this shipping niche should suffer less than others from the imminent influx of new supply.
• For the 11th consecutive quarter, GOGL announced a cash dividend of $0.30 per share for Q4 2023 - that was 50% more than last year for the same period.
• The company has succeeded in significantly reducing its debt - the process of debt reduction has been in full swing recently and has not stopped at the deterioration in profitability.
• GOGL stands out in the bulk carrier sector, specializing in Capesize vessels, boasting robust financials, and is currently undervalued amidst upward EPS revisions.
• I therefore reiterate my Buy rating on the stock.

My Thesis

When I last wrote about Golden Ocean Group Limited ( GOGL ) stock in June 2023, it was trading at $7.6 - at the time of this writing it's trading at $13.8, and GOGL's total return for the period indicated is around 90%. That's more than five times what the market, as represented by the S&P 500 Index ( SPX ), has shown....

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