Excel Maritime and DryShips Under Review: Shipping Stocks Making a Comeback
by PR Newswire
LONDON, February 6, 2013 /PRNewswire/ --
Shipping industry is going through rough waters. The industry is dealing with steep decline in vessel rates due to low demand and over supply. There is a large number of shippers competing to share the pie and the negative impact is clearly visible through plummeting stock prices. Consequently, companies are also saddled with ships which are now set in docks due to lack of business. Stocks like Excel Maritime Carriers Limited (NYSE: EXM) lost more than 50 percent of their value in 2012. This decline is in-line with broader Baltic Dry Index losing 50 percent in the year. DryShips Inc (NASDAQ: DRYS) reported net loss of $51 million for its third quarter of the year. StockCall technical analysis on Excel Maritime and DryShips are now available for free once you sign up at
However, there seems to be a reversal in sight. Improving economic situation in China is likely to be a big catalyst. Other emerging economies like India are also likely to increase their demands for ore and coal, which may help shipping industry getting out of its glut.
DryShips Engages in Deep Water Drilling
DryShips Inc. followed the industrial trend and lost a major chunk of its market capitalization. The company is now trying to reinvent itself as an ultra deep water driller. For this purpose, it also undertook acquisition of Ocean Rig. The company is also divesting its idle ships as it sold two of its work-in-progress tankers. The tankers are currently being built by Samsung Heavy Industries and DryShips is reported to have paid $21.4 million in compensation to the unnamed buyer for taking the ships off their hands. However, the divestment will help the company to save about $100 million in capital expenditure annually. DryShips reported 46 percent increase in its third quarter operating expenses to $307 million. Sign up now to download the free report on DryShips at
Despite all the problems, DryShips is one of the leading stocks in its sector. Its deep water drilling operations provide some cushion against turmoil of dry shipping sector. DryShips is also saddled with debts and is unable to generate enough resources to pay them off. While the recent uptick in dry shipping rates is optimistic, the company is required to look for additional revenue streams to reduce the debt burden. However, the company has been able to outperform most of its peers, indicating its internal strength. Recovering shipping sector and DryShips' investment in Ocean Rig may push this stock up this year and may provide good returns to the investors.
Excel Maritime Recovers in 2013
Excel Maritime Carriers Ltd. stock made a good comeback in 2013. After experiencing massive losing streak in 2012, the stock has appreciated 28 percent on a year-to-date basis. The company is struggling with industry-wide issues like demand and supply imbalance. It is also dealing with high debt burden. Excel has gone through dire times that it had to delay announcing its third quarter results. For the full and free technical report on Excel Maritime, register at
However, the stock is likely to benefit from the general improvement in shipping sector. Though Baltic Dry Index is still in the negative territory but it bottomed out in late second half of 2012 and now is showing signs of recovery. At the time this article was completed, the company has not yet released its earnings. But Excel Maritime is set to report its results today.
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