- The company is operating in the middle to small dry bulk vessel segment, providing less volatile returns. Yesterday they reported record revenue and nice EPS figures.
- They own a total of 11 vessels, with an average age of 13 years, while especially their Panamax vessels are quite old.
- Time chartering gaps will provide excess value to the company's shareholders.
- Unfortunately, their common shares don't pay any dividends and the high/low sulfur oil price differential will impact profitability, leading to an otherwise ridiculously low earnings multiple.
- I believe that the market is exaggerating on this one, as the revenue and earnings growth doesn't justify such a low valuation, thus making it a speculative long investment opportunity.
For further details see:
Letting The Market Cry, Buying EuroDry