PANL - Pangaea Logistics Solutions: Defensive Dry Bulk Shipping Play With Solid Dividend Coverage - Buy

2023-03-20 20:50:02 ET

Summary

• Pangaea Logistics Solutions ("Pangaea") is a somewhat unique dry bulk shipping company with a diversified strategy and stronghold in the ice class niche.
• Last week, Pangaea reported respectable fourth quarter and full-year 2022 results with strong profitability as well as decent cash generation.
• While Q1 will be impacted by seasonally weaker charter rates, the company should remain solidly profitable with expectations for improvement in subsequent quarters.
• After last week's sell-off, the company's annualized dividend yield has increased to 7.7%. Unlike many peers, the company is paying a fixed quarterly dividend of $0.10 per share.
• Investors with some faith in China's reopening and western central banks' ability to deal with the fallout of their own monetary policy moves should consider scaling into Pangaea Logistics Solutions shares at current levels.

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