A solid quarter caps a strong year. Reported adjusted 4Q2021 EBITDA of $16.0 million included minimal dry dock expenses, which was ~$3.0 million higher than 3Q2021. TCE rates averaged $29,157/day. Reported adjusted 2021 EBITDA of $42.3 million included minimal dry dock expenses, which was well above 2020 adjusted EBITDA of $6.2 million. TCE rates averaged $24,222/day.Adjusting 2022 EBITDA estimate to $59.4 million based on TCE rates of $25.8k/day. Visibility is limited with forward cover of 19% and seasonality is expected, but acquisitions and a well balanced dry bulk market set a good tone for this year. While visibility is low, operating leverage is very high; each $1.0k/day change in the BKI/BPI/BSI indices impacts cash flow by +/- $1.4 million, or $0.50/share.Fleet expansion continues with a third acquisition. Shortly, the acquisition of a 2014-built Supra for $21.2 million will close. Financing in the 50% range on attractive terms is expected to be in place by the end of 2Q2022, if not sooner. 2021 financing events included new debt for two acquisitions, the conversion of a bridge loan into equity, ATM issuance of ~$10.0 million and redemption of the remaining preferred stock.Hard to avoid volatility, but intermediate dry bulk market outlook remains promising due to a muted order book and upcoming carbon emission rules. While there are lingering macro concerns, namely on Chinese industrial curtailments ahead of the 2022 Winter Olympics and potential tighter monetary conditions, and volatility with typical seasonality is expected, we believe that the dry bulk market is close to balanced and TCE rates are likely to firm up over the rest of the year. Maintain Outperform rating and price target of $45/share due to balanced dry bulk market fundamentals. Recent stock price performance has been relatively weak despite attractive intermediate dry bulk market fundamentals. After a strong start to last year, up 519% through three quarters, the stock pulled back sharply by 39% in 4Q2021 in response to the expected weakness in TCE rates. While the stock has partially recovered with a gain of 25% this quarter, we believe that the risk/reward profile remains attractive based on balanced dry bulk market fundamentals and an expanded fleet. Read More >>