Show me a company that can grow stronger when the chips are down, and I'll show you a company that's ready to rumble once those chips fall back into place.
All this time later, we're still waiting for Diana Shipping to signal the perception of a bottom in this viciously oversupplied dry-bulk market by initiating its long-awaited shopping spree. But to the company's substantial credit, it now stands ready to pounce with even greater force now that its cash hoard has grown to $451 million! This company has managed to expand its treasury by 60% during some of the most brutal business conditions imaginable, and that singular accomplishment in my mind speaks volumes on the quality of this management team.
Rival Navios Maritime Holdings
While Diana has yet to embark on its acquisition blitz, the company did expand the fleet with a 22% increase in vessel operating days over the prior-year quarter. That helped somewhat in absorbing a noteworthy 27% decline in average realized charter rates, but the company's $17.4 million bottom-line haul was still a full 37% behind the prior-year mark. Although a few of what I'll term "legacy" charters from before the industry's collapse continue to collect outstanding charter rates, recent Capesize charters are dipping as low as $13,000 per day from a peak "legacy" contract rate of $74,750 per day.
I am maintaining a vigil with respect to Diana Shipping's vessel acquisitions, in search of signs that this well-run operator perceives a bottom in dry-bulk's disastrous collapse. If you would like to catch the alert when Diana Shipping sounds the all-clear, please bookmark my article list or follow me on Twitter.
Fool contributor Christopher Barker can be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He tweets. He owns no shares in the companies mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.