Recent CEO Interview focused on the active fleet management strategy, fleet renewal program and solid financial position. Strong corporate governance was also highlighted as a positive. Investors can review the full interview with CEO Gary Vogel, including Q&A, on our research portal at channelchek.com.The active fleet management, or cargo-centric, strategy embraces dry bulk market volatility to generate TCE outperformance and temper periodic weakness. Versus the adjusted BSI index, the active fleet management strategy has generated above average TCE rates and created ~$37 million of incremental EBITDA over the past year. Fleet renewal program is ongoing. The sale of Goldeneye, an 18-year old Supramax, improved the fleet profile and generated proceeds of $5 million. Also, the scrubber program enhanced the fleet and adds a potential competitive advantage if fuel spreads widen again.Financial leverage remains high but appears manageable. 2Q2020 debt was $523.5 million, excluding unamortized debt costs of $26.6 million, and net debt was $451.5 million. Financing activity over the next year is likely to be focused on refinancing the Norwegian Bonds.Reverse stock split effective today, September 15th. The reverse stock split, which was approved at the last shareholder meeting, will reduce the share count from ~77.1 million shares to ~11.0 million shares. While we are not great fans of reverse stock splits, the split should make the stock more marketable to investors, especially institutions. We have adjusted our actual/estimated numbers and our price target to reflect the reverse stock split.Maintain Outperform rating due to compelling risk/reward profile. EGLE continues to build a strong track record of TCE rate outperformance and solid execution on the fleet renewal program, including the sale of an older Supramax this quarter. The fleet profile has improved and scrubber installations position the Ultramar/Supramax fleet to benefit when/if fuel spreads recover once COVID-19 passes. The stock price drop of 43% this year creates a compelling risk/reward profile and solid upside potential given our price target of $32.50/share.Read More >>