Adjusted EBITDA of $32.2 million beat our estimate of $29.2 million. TCE rates of $30.8k/day and ownership days of 1,514 were higher than expected in addition to cash G&A expenses were lower than expected due to non-cash comp. The results hit a record level due to the timely expansion of the Cape fleet.Updating 2021-2 EBITDA estimates. 4Q2021 forward cover is very high and higher than expected into 1Q2022. Our 2021 EBITDA estimate moves up to $90.7 million based on the positive quarter and TCE rates of $26.9k/day. 4Q2021 forward cover of 69% at ~$38.4k/day is very high due to a strong start to the quarter. Our 2022 EBITDA estimate of $102.2 million is based on TCE rates of $24.5k/day. 1Q2022 forward cover of 41% at $26.9k/day is higher than expected, with seven capes fixed at a TCE rate north of $25.0k/day. We have factored in typical seasonality, with TCE rates of $21.0k/day in 1Q2022 and $24.5k/day.Stock price weakness makes buy backs attractive. Pro forma 4Q2021 cash estimate is $58 million and Dukeship will be unencumbered so financial flexibility is good. While the Dukeship acquisition pushed out dividends, retiring convert debt and buy backs are more attractive. Since the debt conversion price is $1.20/share, we expect buy backs to ramp up. Staying positive on Cape market, but expecting continued volatility. After moving sharply higher into the $80k/day range, Cape TCE rates have quickly retrenched into the $28.0k/day range. Added volatility is expected, but our outlook remains positive based on infrastructure projects and global stimulus programs plus port congestion and coal shortages. Importantly, the order book remains muted, and the January 1, 2023 implementation of new carbon emission regulations (EEXI) could trigger slow steaming that effectively lowers supply.Maintain Outperform rating and price target of $1.85/share. As highlighted last month's virtual NDR, a larger Cape fleet and improved financial position create a more stable operating platform. While dividends are less likely this year, buy backs and refinancing convert debt becoming higher priorities at the current stock price. While up 100% this year, the stock is down 26% in 4Q2021 and the risk/reward profile is very favorable. Positives include expanded operating leverage post the fleet expansion, near-term forward cover and a bias toward time charters with indexed rates to capture upside rate optionality. Read More >>