Zachstocks, based in Atlanta, Georgia, recently published an overview of the four key business metrics relevant to investing in shipping companies.
After experiencing sharp declines over the last six months, dry bulk shipping stocks now appear to be trading at attractive values. But with significant risk due to softening of the
global economy, investors must use caution and understand fundamental issues that drive the value of these stocks.
The shipping review (http://zachstocks.com/2008/12/staying-afloat-a-primer-on-the-shipping-industry/) written by Zachary
D. Scheidt, CFA; gave a detailed explanation of the four business decisions which most affect stock prices of companies operating in this sector.
1. Capital Funding - Does the company use debt, equity, or internal cash to bankroll its growth
2. Customer Contracts - What type of long-term or short-term agreements are in place for each ship owned
3. Dividends - What are the quarterly payments Is this a fixed dividend or does it fluctuate from quarter to quarter
4. Vessel Type - Does the company own mega freighters Nimble smaller ships In-between, or an assortment
Successful analysis of these measures should enable investors to narrow the field of options to the select few which will provide superior investment performance.
About ZachStocks: ZachStocks (http://zachstocks.com) is a primary source for research on newly issued stocks and growth companies. The site has an
equal propensity to offer short ideas as well as long ideas helping investors to benefit from both rising and falling prices. An emphasis on IPOs and secondary offerings enable readers to
participate in investment opportunities during particularly profitable times during a growth company'ss lifecycle.
About Zachary D Scheidt, CFA: Mr. Scheidt has extensive experience in the alternative investment arena, having managed assets for two long-short hedge funds for the last 8 years. Zachary
is the owner/operator of Scheidt Capital Management, LLC; which provides investment research and consulting services to investment professionals. Mr. Scheidt is also the editor of Death
Cross Trader and Taipan Online, two publications managed by Taipan Publishing Group (http://www.taipanpublishinggroup.com/)