Increasing 2021 EBITDA estimate to $68.2 million based on TCE rates of $21.7k/day from $63.4 million based on TCE rates of $21.0k/day and total shipping days of 19,260. The outlook remains firm and we moved our quarterly TCE rate estimates higher by $1k to $22.5k/day in 2Q2021, $25.0k/day in 3Q2021 and $22.5k/day in 4Q2021.Fleet expansion update. After selling several older dry bulk vessels over the past two years, 2Q2021 was busy on the fleet expansion front, with the delivery of two Ice-Class Post Panamax new builds and the closing of two acquisitions of a 2013-built Ultramax and a 2013-built Supramax. The acquisition of a 2013-built Panamax closed last week and two other new builds are slated for delivery in 4Q2021/1Q2022. Pro forma for the acquisitions and new builds, the fleet will total 22 in 3Q2021 and 24 by 1Q2022.Attractive financing in place for acquisitions and new builds. The total acquisition cost of approximately $52.6 million was funded with existing cash of $14.4 million and financings of $38.2 million. The financings included two term loans for $26.2 million and a lease for $12.0 million. The new builds were funded with a lease for $65.1 million.Public market float increasing to ~58% due to the unwinding of a long standing ownership stake by a fund. ATM program established to opportunistically raise growth capital. A current board member transferred 2.6 million shares to irrevocable trusts in 1H2021, and a fund has reduced the ownership position from 13.5 million shares (~30%) to 3.3 million shares (~8%) since March. The ATM program of $25 million could further increase the public market float, but we view the filing as adding a tool to the tool kit and see no indication that equity issuance is imminent given the current outlook and capital structure.Maintain OUTPERFORM Rating - Upside potential remains attractive. The dry bulk market has materially firmed over the past three quarters, and we like the consistency of the unique business model. At the same time, a major shareholder has sold 10.0 million shares since March and the public market float has improved. We believe that PANL is undervalued trading at an enterprise value multiple of 6.6x 2021E EBITDA and is an attractive way to benefit from favorable dry bulk market fundamentals. After hitting a 2021 high of $5.29 /share in late June, the stock has dropped ~17%, and we believe that the risk/reward profile remains attractive. Read More >>