SBLK

Star Bulk Carriers Corp

Industrial/Transportation


Presented:10/21/2019
Price:$11.07
Cap:$1.05B
Current Price:$19.93
Cap:$2.37B

Presented

Date10/21/2019
Price$11.07
Market Cap$1.05B
Ent Value$2.27B
P/E RatioN/A
Book Value$16.15
Div Yield0%
Shares O/S94.55M
Ave Daily Vol613,653
Short Int4.23%

Current

Price$19.93
Market Cap$2.37B
Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide. Its vessels transport a range of major bulks, including iron ores, coal, and grains, as well as minor bulks, such as bauxite, fertilizers, and steel products. As of April 10, 2019, the company had a fleet of 109 vessels with an aggregate capacity of approximately 12.45 million deadweight ton, including 17 Newcastlemax, 19 Capesize, 2 Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 17 Ultramax, and 10 Supramax vessels. It also provides vessel management services to dry bulk vessels of various sizes. The company was incorporated in 2006 and is based in Maroussi, Greece.

Star Bulk Carriers Corporation (SBLK) – Long 

Publicly traded companies mentioned herein: Star Bulk Carriers (SBLK), Vale S.A. (VALE)

Highlights

The presenter is long shares of Star Bulk Carriers (SBLK), a dry bulk company with 118 vessels heavily exposed to iron ore and coal transport. The company has a $1B market cap, and the stock is trading at $11 (0.68x book value). An opportunity exists due to the dam disaster at the Córrego do Feijão iron ore mine in Brumadinho, Brazil in January 2019, which decreased demand. But the disrupted capacity is expected to come back, and SBLK should further benefit from the widening high-sulfur fuel oil - low-sulfur fuel oil (HSFO-LSFO) spread due to their positioning with scrubbers. The presenter sees the company delivering a 30% FCF yield in the next three years and thinks there is ~100% upside in the stock.

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Idea Discussion

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