$EGLE - EAGLE BULK SHIPPING
2017-01-30 5:25 PM
Eagle Bulk Shipping is an interesting beast to track. Yes, it's had its upheavals, but we follow this stock because their fleet has no Capesize or Panamax vessels. It's all Handysize and Supramax - 100% bread-and-butter bulk shipping; there's a reason they're called 'Handy'.
By comparison, take a look at some others in our bulk basket. These are approximate percentages of Handy/Supra/Ultra deadweight tonnage against their total fleet deadweight:
$GNK Genco Shipping & Trading - 50.1%
$NM Navios Maritime Holdings - 19.5%
$SALT Scorpio Bulkers - 57.4%
$SB Star Bulk - 18.7%
$SFL Ship Finance Int'l - 24.8% *
*(Ship Finance has a diversified fleet of ship types, and the figure reflects the portion of their drybulk segment)
Of course, after that sudden bombardment of numbers, you are no doubt ready for more………no?
OK, here's a picture - I like pictures; not PowerPoints though, just pictures...
So how is $EGLE doing compared to its more diversified industry counterparts? Well, there was the post-US-election spike seen across
many other shipping stocks. However, EGLE is currently showing some technical weakness, similar to others in our dry bulk basket with Handy/Supra/Ultra exposure. This weakness isn't as profound as that seen across some of the container-ship or tanker stocks recently, so all may not be gloomy.
Not seen here was the recent staircase-climbing of others like $SALT or $SFL, but technically we've seen EGLE puttering along comfortably, riding on the 5.50 - 6.00 support seen since the November 2016 spike and pullback. RSI is relatively neutral, and the MACD is taking a poke at bearishness, nowhere near confirmable. This might be a little testing of weak support at $6.00, slightly higher than our 5.50 - 6.00 support band.
We shall see. The first tentative signs of bullishness in the dry bulk market may be all EGLE is waiting for: this eagle flew up to 7.61 by the end of last week, a $100m private placement being announced Jan. 23rd.
Yes, there are both optimistic and pessimistic opinions out there, depending on which segment of shipping you're looking at.
However, the potential of the ubiquitous handysize bulk carrier may soon prove itself once again. As one shipping expert put it, "Those with the gear shall persevere."