SB - Star Bulk Carriers: The Stock Is Still Undervalued
- Since my first article on SBLK, the stock's price increased by more than 45% to $32 per share, then retreated to below $30.
- Based on my new calculations, the stock is worth $31 per share. However, based on the market condition, I believe the stock is worth even more.
- Iron ore prices increased in the last months, reflecting increasing iron ore demand from China. However, China’s iron ore strong demand is not stable.
- According to the iron ore demand, freight rates, and charter rates, Star Bulk is ready to stay profitable in the second quarter of 2022.
- As charter rates increase, SBLK's strategy will make it more competitive than GRIN and GOGL.
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Star Bulk Carriers: The Stock Is Still Undervalued