Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drybulk vessel owner Baltic Trading
With that in mind, let's take a closer look at Baltic's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||New York, N.Y. (2009)|
|Market Cap||$247.5 million|
Chairman Peter Georgiopoulos
President/CFO John Wobensmith
|Cash/Debt||$59.26 million / $10 million|
Eagle Bulk Shipping
Navios Maritime Holdings
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 147 members who have rated Baltic believe the stock will outperform the S&P 500 going forward. These bulls include wtnewell and the top-ranked stock picker in all of CAPS, bullishbabo.
Earlier this month, wtnewell described Baltic in bullishly basic terms: "A long term play, based on the long term economic recovery."
For the uninitiated, Baltic was established by another highly rated shipper, Genco Shipping & Trading
CAPS leader bullishbabo elaborates:
When I look for a shipping play, I look for (1) age of fleet, (2) debt levels, (3) profitability, and (4) valuation. I think Baltic Trading fits the bill. Let's examine more closely:
1. Age of fleet: The fleet is new.
2. Debt levels: There is no debt currently, although a small amount may be forthcoming.
3. Profitability: I've seen the way Genco manages its ships, and they are skilled in managing vessel operating expenses. With a new fleet, I'm certain that Baltic Trading will operate above break-even for a long time. A new fleet and no debt lead to low maintenance costs and non-existent interest expenses.
4. Valuation: As I said above, the ships were purchased at a good price and you get a further discount from the IPO price. ...
Baltic Trading is the true pure play on the [Baltic Dry Index]. I realize major economic recovery could take years, but I'm content collecting the $0.16 quarterly dividend, which works out to a 5.84% yield on my basis price. Major economic recovery will see a soaring BDI, which in turn will see Baltic Trading trade at a much higher price.
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