So well-documented is the notion that a huge number of newly built dry-bulk ships will be entering the market next year and beyond, leading to a potential glut, that market participants discounted this as a reason for the steep two-day drop in shipping stocks.
One of the leading dry-bulk decliners Wednesday was Genco Shipping & Trading (GNK), whose shares lost 5.7% to $19.60. The company reported its third quarter after Wednesday's market close, saying it earned $1.10 a share, exceeding analysts' profit targets by 9 cents.
DryShips' (DRYS) stock, meanwhile, also lost 5.7% during the session after retreating 7.6% on Tuesday. The company, the first Greek dry bulk concern to go public in 2005 and the first to report third-quarter results this earnings season on Monday, surpassed expectations and reported a "clean quarter," in the words of one shipping-stock investor. The stock finished Wednesday at $6.01.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV