Fertilizers, coal, and grain are three top examples of dry bulk cargoes that have to move over long distances. This kind of traffic will not decline, no matter where an economy may be in a business cycle.
Dry bulk cargo cannot be transported by air except in dire emergencies. It is possible to move such materials over land or by rail within countries and continents. However, global trade in the most important categories of bulk cargo depends on water transportation.
Containers and barges conjure images of large capital. That is why this stock with a market capitalization of just over $400 million deserves investor attention. The stock has traded at over $13 during this period against a 52-week low of $8.33. About 65% of the stock is available for retail trade.
The Net Profit Margin has nearly touched 50% over the past four quarters. Return on Average Assets has been a solid 16.64% during this period. The company has topped $80 million in revenues during 2007 with just 225 employees, and the Price to Earnings Ratio is just 7.34. The Most Recent Quarter has ended with Total Debt at just 0.30 of Total Equity. The stock is profitable and poised for growth. It is a rare investment opportunity in a world climate of business uncertainties. 73% of the company’s fleet capacity is booked under fixed income and profitable charters. The stock is therefore relatively less vulnerable to market fluctuations.
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