Marketplace Roundtable

Latest Episodes:

Value Investor's Edge Live #50: Genco Shipping's New Dividend Policy In Full Swing Jul 26, 2022

Show notes

John Wobbensmith, CEO of Genco Shipping (GNK), joined J Mintzmyer's Value Investor's Edge Live on June 14, 2022, to discuss the dry bulk markets and forward prospects and capital allocation. Genco Shipping is a major US-listed dry bulk company with 44 vessels on the water. We discussed overall dry bulk fundamentals, ranging from China's impact on markets to the impact of the Ukraine invasion on midsize trade routes in grain and coal. We also reviewed the economics of GNK's scrubber program and the updated shareholder returns program. Genco will pay out nearly 100% of free cash flow going forward and aims to be net debt free by next year.
This interview and discussion is relevant for anyone with dry bulk investments or interest in the overall sector, including Diana Shipping (DSX), Eagle Bulk (EGLE), EuroDry (EDRY), Grindrod Shipping (GRIN), Golden Ocean (GOGL), Navios Maritime Partners (NMM), Pangaea Logistics (PANL), Safe Bulkers (SB), Seanergy Maritime (SHIP), and Star Bulk Carriers (SBLK).
Topics Covered
(0:00) Intro/Disclosures
(1:45) Dry bulk market overview
(6:00) Additional color on China dynamics and Ukraine impacts?
(10:45) Updated views on market vs. early-2022 expectations?
(14:30) Will elevated opex levels remain going forward, or just a one-off?
(17:45) Update on scrubber spreads and company strategy?
(21:30) Any interest in secondhand vessel acquisitions?
(23:30) Desire to further reduce debt or still targeting net debt zero?
(25:30) Any interest in repurchases?
(27:30) Discussion on the merits of zero net debt strategy.
(35:45) Review of newbuild markets, any interest here?
(39:00) Why invest in GNK vs. other dry bulk peers?

Value Investor's Edge Live #49: Star Bulk Carriers And Update On Dry Bulk Markets Jun 28, 2022

Show notes

Hamish Norton, President of Star Bulk Carriers (NASDAQ:SBLK), Co-CFOs Christos Begleris and Simos Spyrou, and Head of Research Constantinos Simantiras joined J Mintzmyer's Value Investor's Edge Live on June 8, 2022, to discuss the dry bulk markets and forward prospects and capital allocation. Star Bulk Carriers is the largest US-listed dry bulk company with 128 vessels on the water. We discussed overall dry bulk fundamentals, ranging from China's impact on Capesize markets to the impact of the Ukraine invasion on midsize trade routes in grain and coal. We also reviewed the economics of SBLK's scrubber program and current capital allocation priorities.
This interview and discussion is relevant for anyone with dry bulk investments or interest in the overall sector, including Diana Shipping (DSX), Eagle Bulk (EGLE), EuroDry (EDRY), Genco Shipping (GNK), Grindrod Shipping (GRIN), Golden Ocean (GOGL), Navios Maritime Partners (NMM), Pangaea Logistics (PANL), Safe Bulkers (SB), and Seanergy Maritime (SHIP).
Topics Covered
(0:00) Intro/Disclosures
(1:00) Current dry bulk market conditions and prospects?
(5:30) More net optimistic or concerned about China developments?
(7:30) Midsize has been steady - will Ukraine disruptions threaten rates?
(10:00) More bullish vs. our last discussion in January 2022?
(11:30) Are asset values getting overextended?
(13:45) Are demolition values sustainable or too high?
(16:45) How long would it take to order newbuild vessels?
(18:00) Scrubber economics? Any desire to lock in the profit spread?
(22:00) Capital allocation priorities: Will SBLK be paying down more debt?
(25:15) Which dry bulk vessels are currently the most attractive?
(27:00) Logic behind the share sale and repurchase arbitrage?
(29:00) Any share issuance planned outside of direct asset purchases?
(30:00) Potential to repurchase shares? Needed criteria?
(32:00) What differentiates SBLK from peers? Why invest here?
(36:45) Promising propulsion technologies or other ESG projects?
(39:00) Risk of significant share overhang due to large Oaktree position?