ESEA - Up 87% YoY I Am Selling Euroseas (Downgrade)

2024-01-24 12:10:21 ET

Summary

• Euroseas stock has outperformed its industry peers during the ongoing surge in rates caused by challenges in the Red Sea.
• Unlike liners, charterers like Euroseas may not immediately benefit from rate surges due to fixed charters, but the company's shorter employment profile and new build program position it for growth.
• However, this scenario remains highly speculative, as the evolving situation in the Red Sea could unfold in various ways.
• In light of increased speculation following my most recent update, I decided it's prudent to secure my profits and exit Euroseas.

Euroseas Ltd. ( ESEA ) stock has rallied by more than 87% over the past year, outperforming its industry peers Danaos Corporation ( DAC ), Global Ship Lease, Inc. ( GSL ), and, to a lesser extent, Costamare Inc. ( CMRE ) (due to its only partial, yet significant containership exposure)....

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