Targeted Strategies for Today's Evolving Markets

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Multiple Lanes for Ultrapetrol Limited’s (ULTR) Business Expansion

The Water Transportation Industry has so many facets that investors have often used it to stabilize the financial viability of their portfolios. The fixed assets required to be a significant player in the entire Transportation Sector make it a favorite for large capital stocks. That is why this stock, with a market capitalization of less than $500 million, is so appealing.

Broad participation across multiple segments of the water transportation industry is another particular strength of this stock. The company has four business units. One operates in each sector of the industry, which can be roughly divided into: river barge transportation; offshore supplies; ocean vessels; and passenger cruise segments. Investors can expect the stock to be resilient against negative cyclical movements in specific parts of the world economy. The company is based in the Bahamas, but has business on the far side of the Atlantic, apart from its home region.

2007 revenues have grown annually by 28% for this stock. The company has made impressive progress in expanding and modernizing its barge business in South America. This business development is most opportune given the increased grain and bio-fuel demands from the region. Financial prospects for 2009 are equally bright, since the company will receive new vessels for its offshore supplies business during that year. The company has secured large and lucrative contracts from tour operators for Aegean Sea cruises. The latter is therefore securely placed to grow in 2008 over 2007 levels. These balanced growth prospects across core business lines augur well for the stock.

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