Genco Shipping & Trading Ltd.

  • TickerGNK
  • ISINMHY2685T1313
  • ExchangeNew York Stock Exchange
  • SectorIndustrial Transportation
  • CountryMarshall Islands
Jørgen Lian

Financing 2°C Shipping - Financial risk of future regulations

We have worked with KLP and other partners in the Green Shipping Programme to assess the risk for financial stakeholders in various shipping technologies within the VLCC, Capesize and 10k TEU container segments. We find: 1) relative attractiveness of short-dated assets with scrubbers; 2) high uncertainty among newbuild alternatives in an uncertain regulatory environment; 3) that current IMO targets seem within reach in our base case; and 4) that further tightening of regulations is needed to align shipping with the Paris Agreement. We find the current outlook favours LNG-fuelled vessels for ne...

Jørgen Lian

Genco Shipping & Trading (Buy, TP: USD18.90) - Early signs of things to come

We have raised our 2021e EBITDA by 19% to reflect Genco’s Q2 TCE rate guidance, fixed timecharters and current market fundamentals. As well as strong Q1 results, the company took several steps towards implementing its new dividend strategy. We also calculate an end-2021e net debt ratio of 16% (including the recently announced quarterly DPS hike to USD0.05), compared to Genco’s target of 20%. We reiterate our BUY and have lifted our target price to USD18.9 (14.6).

Dave Nicoski ...
  • Ross LaDuke

Vital Signs: Actionable charts

In this product we rank the most positive and negative domestic stocks, filter the symbols by market-cap and trading volume, and then divide the companies into sectors and groups. We then manually look through charts leadership/changes, bottoms-up/top-down ideas, short-term patterns that may have long-term significance, etc. We believe you will find this product valuable as significant price and relative moves begin in the daily charts.

Jørgen Lian

Genco Shipping & Trading (Buy, TP: USD14.60) - New strategy announced

Yesterday evening, Genco announced a new strategy, entailing growth, deleveraging, and a compelling dividend payout. In our view, Genco’s asset base is well suited to the task, which coupled with strong markets and a robust balance sheet could see shareholders enjoy strong returns on invested capital. Genco aims to deliver this through a low cash-breakeven and net loan-to-value ratio. We reiterate our BUY and have lifted our target price to USD14.6 (11.9).

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Upgrading Transports & Manufacturing To Overweight The S&P 500, Nasdaq 100 (QQQ), and Russell 2000 (IWM) all managed to break above their respective resistance levels which we highlighted in last week's Compass, and both the S&P 500 and Russell 2000 closed yesterday at all-time highs. Considering these new price highs, and ongoing market dynamics which remain largely positive, we expect higher prices ahead and recommend adding exposure on pullbacks. · S&P 500, Nasdaq 100, Russell 2000. The S&P 500 broke above its symmetrical triangle pattern and prior resistance, which is now support...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Booster Shots: Attractive bottom-fishing stocks

For investors looking for bottom-fishing candidates; stocks that are breaking downtrends, exhibiting ascending reaction lows, and showing stabilizing relative strength.

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Market remains in purgatory Purgatory is a reference we have used to describe the state of the market numerous times throughout 2019, and we believe this remains the case. Technical signals continue to suggest that while there are little-to-no signs for us to expect impending doom (economic data notwithstanding), there is also little to suggest an imminent broad market rally. Until these signals begin leading us one way or the other, our neutral outlook remains appropriate. • Small-caps, Transports, Banks. Small-caps underperforming large-caps remains on our list of concerns as it has for ...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Semiconductors, Transportation improving The S&P 500 continues to move higher on narrow leadership, which is not inspiring a bullish outlook. Currently leading the S&P 500 higher in terms of RS are Technology, Services, Facebook (FB), Amazon (AMZN), and Procter & Gamble (PG). If this were a bull market, (1) PG would likely NOT be listed here as leadership, and (2) we would expect to see participation broaden out to Discretionary (RCD), Transportation (IYT), banks (KBE), Industrials (XLI), and small-caps (IWM). All of these areas are still consolidating below meaningful resistance, and we cont...

Jørgen Lian

Financing 2°C Shipping - Financial risk of future regulations

We have worked with KLP and other partners in the Green Shipping Programme to assess the risk for financial stakeholders in various shipping technologies within the VLCC, Capesize and 10k TEU container segments. We find: 1) relative attractiveness of short-dated assets with scrubbers; 2) high uncertainty among newbuild alternatives in an uncertain regulatory environment; 3) that current IMO targets seem within reach in our base case; and 4) that further tightening of regulations is needed to align shipping with the Paris Agreement. We find the current outlook favours LNG-fuelled vessels for ne...

Jørgen Lian

Genco Shipping & Trading (Buy, TP: USD18.90) - Early signs of things to come

We have raised our 2021e EBITDA by 19% to reflect Genco’s Q2 TCE rate guidance, fixed timecharters and current market fundamentals. As well as strong Q1 results, the company took several steps towards implementing its new dividend strategy. We also calculate an end-2021e net debt ratio of 16% (including the recently announced quarterly DPS hike to USD0.05), compared to Genco’s target of 20%. We reiterate our BUY and have lifted our target price to USD18.9 (14.6).

Dave Nicoski ...
  • Ross LaDuke

Vital Signs: Actionable charts

In this product we rank the most positive and negative domestic stocks, filter the symbols by market-cap and trading volume, and then divide the companies into sectors and groups. We then manually look through charts leadership/changes, bottoms-up/top-down ideas, short-term patterns that may have long-term significance, etc. We believe you will find this product valuable as significant price and relative moves begin in the daily charts.

Jørgen Lian

Genco Shipping & Trading (Buy, TP: USD14.60) - New strategy announced

Yesterday evening, Genco announced a new strategy, entailing growth, deleveraging, and a compelling dividend payout. In our view, Genco’s asset base is well suited to the task, which coupled with strong markets and a robust balance sheet could see shareholders enjoy strong returns on invested capital. Genco aims to deliver this through a low cash-breakeven and net loan-to-value ratio. We reiterate our BUY and have lifted our target price to USD14.6 (11.9).

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Upgrading Transports & Manufacturing To Overweight The S&P 500, Nasdaq 100 (QQQ), and Russell 2000 (IWM) all managed to break above their respective resistance levels which we highlighted in last week's Compass, and both the S&P 500 and Russell 2000 closed yesterday at all-time highs. Considering these new price highs, and ongoing market dynamics which remain largely positive, we expect higher prices ahead and recommend adding exposure on pullbacks. · S&P 500, Nasdaq 100, Russell 2000. The S&P 500 broke above its symmetrical triangle pattern and prior resistance, which is now support...

Alexander Aukner ...
  • Joachim Gunell
  • Jon Masdal
  • Jørgen Lian
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Martin Hoang Nguyen
  • Mats Bye
  • Niklas Wetterling
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Patrik Ling
  • Rune Majlund Dahl
  • Simen Mortensen

Northern Lights

Jørgen Lian ...
  • Ole-Andreas Krohn

Northern Lights

Alexander Aukner ...
  • Christoffer Wang Bjørnsen
  • Håkon Astrup
  • Helene Kvilhaug Brøndbo
  • Karl-Johan Bonnevier
  • Martin Huseby Karlsen
  • Niclas Gehin
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Patrik Ling
  • Tomi Railo

Northern Lights

Håkon Astrup ...
  • Jørgen Lian
  • Karl-Johan Bonnevier
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Rune Majlund Dahl

Northern Lights

Christoffer Wang Bjørnsen ...
  • Eivind Sars Veddeng
  • Håkon Astrup
  • Jon Masdal
  • Jørgen Lian
  • Karl-Johan Bonnevier
  • Martin Hoang Nguyen
  • Mats Bye
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Patrik Ling
  • Simen Mortensen
  • Stefan Gauffin

Northern Lights

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