LONDON, February 6, 2013 /PRNewswire/ --
Shipping industry
is going through rough waters. The industry is dealing with steep
decline in vessel rates due to low demand and over supply. There is
a large number of shippers competing to share the pie and the
negative impact is clearly visible through plummeting stock prices.
Consequently, companies are also saddled with ships which are
now set in docks due to lack of business. Stocks like Excel
Maritime Carriers Limited (NYSE: EXM) lost more than 50 percent of
their value in 2012. This decline is in-line with broader Baltic
Dry Index losing 50 percent in the year. DryShips Inc (NASDAQ:
DRYS) reported net loss of $51
million for its third quarter of the year. StockCall
technical analysis on Excel Maritime and DryShips are now available
for free once you sign up at
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However, there seems to be a reversal in sight. Improving
economic situation in China is
likely to be a big catalyst. Other emerging economies like
India are also likely to increase
their demands for ore and coal, which may help shipping industry
getting out of its glut.
DryShips Engages
in Deep Water Drilling
DryShips Inc. followed the industrial trend and lost a major
chunk of its market capitalization. The company is now trying to
reinvent itself as an ultra deep water driller. For this purpose,
it also undertook acquisition of Ocean Rig. The company is also
divesting its idle ships as it sold two of its work-in-progress
tankers. The tankers are currently being built by Samsung Heavy
Industries and DryShips is reported to have paid $21.4 million in compensation to the unnamed
buyer for taking the ships off their hands. However, the divestment
will help the company to save about $100
million in capital expenditure annually. DryShips reported
46 percent increase in its third quarter operating expenses to
$307 million. Sign up now to download
the free report on DryShips at
http://www.StockCall.com/DRYS020613.pdf
Despite all the problems, DryShips is one of the leading stocks
in its sector. Its deep water drilling operations provide some
cushion against turmoil of dry shipping sector. DryShips is also
saddled with debts and is unable to generate enough resources to
pay them off. While the recent uptick in dry shipping rates is
optimistic, the company is required to look for additional revenue
streams to reduce the debt burden. However, the company has been
able to outperform most of its peers, indicating its internal
strength. Recovering shipping sector and DryShips' investment in
Ocean Rig may push this stock up this year and may provide good
returns to the investors.
Excel Maritime
Recovers in 2013
Excel Maritime Carriers Ltd. stock made a good comeback in 2013.
After experiencing massive losing streak in 2012, the stock has
appreciated 28 percent on a year-to-date basis. The company is
struggling with industry-wide issues like demand and supply
imbalance. It is also dealing with high debt burden. Excel has gone
through dire times that it had to delay announcing its third
quarter results. For the full and free technical report on Excel
Maritime, register at
http://www.StockCall.com/EXM020613.pdf
However, the stock is likely to benefit from the general
improvement in shipping sector. Though Baltic Dry Index is still in
the negative territory but it bottomed out in late second half of
2012 and now is showing signs of recovery. At the time this article
was completed, the company has not yet released its earnings. But
Excel Maritime is set to report its results today.
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