12% Yield, Low Debt, Very Strong Earnings

Looking to profit from the global supply chain logjam? The volatile Baltic Dry Index, which measures the relationship between the supply of large super bulk cargo ships (across 3 different sizes), and the market demand to utilize the ships and their trade routes, has been on a tear since 2021. This company has a new dividend policy - its forward yield is 12.40%. Management has paid down significant debt - Net Debt/EBITDA is only 0.51X, interest expense dropped 50% in Q1 2022. Q1 2022 EBITDA rose 181%, net income grew ~20X, revenue rose 46%. The company had its highest shipping rates since 2010 in Q1 2022.

Genco Shipping & Trading Limited (GNK) is an international ship owning company. We transport iron ore, coal, grain, steel products and other dry bulk cargoes along worldwide shipping routes. Our wholly owned modern fleet of dry cargo vessels consists of Capesize, Ultramax and Supramax vessels that provide an essential link in international trade. GNK's fleet consisted of 44 vessels, as of 3/31/22, with the delivery of the Genco Mary and the Genco Laddey, two high quality, fuel-efficient Ultramax vessels built in 2022 at Dalian Cosco KHI Ship Engineering.

Source: Seeking Alpha

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