This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dry Bulk Profits Held Back by Too Many Ships

Landsberg of Commodore Research said he's paying close attention to developments in Karnataka, India, a state in Southwest India.

The area produces about 45 million tons of iron ore each year, which accounts for roughly 20% in the entire country. Recently, a major corruption scandal took place involving Karnataka's mines, and a resulting probe shut down all companies from exporting iron ore from the region. At the top of the inquiry was Karnataka Chief Minister B.S. Yediyurappa.

Indian officials decided to not only ban exports, but discontinue iron ore production in the mines completely. This has forced consumers, such as China, to turn towards Brazil and Australia.

Normally this would not be a problem, but Karnataka is a major port for Panamax vessels, and Brazil and Australia focus more on Capesize vessels. So the Panamax market could suffer from the Karnataka shutdown, Landsberg says.

DryShips competitor Eagle Bulk (EGLE - Get Report)is expected to report its quarterly results on Wednesday. Analysts polled by Thomson Reuters anticipate a loss of 4 cents a share on $67.4 million in revenue in the June period.

-- Written by Joe Deaux in New York.



>To submit a news tip, send an email to: tips@thestreet.com

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GNK $0.00 0.00%
EXM $0.00 0.00%
EGLE $8.49 0.00%
DRYS $0.74 0.00%
AAPL $124.75 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs