Global Hunter Securities Initiates Coverage on 12 Dry Bulk Shipping Companies

This morning, Global Hunter Securities initiated coverage on 12 companies in the dry bulk shipping sector. In the report, Global Hunter Securities writes, "We believe that dry bulk is at the low point of an extreme boom-bust cycle, driven primarily by oversupply. Shipping in general is a very cyclical industry characterized by significant booms and busts. We note that this dynamic is driven by the fact that vessels are long-lived assets that have a multi-year lead time from ordering to delivery. Given this, an unexpected positive shock to demand can lead to several years of high rates, as new deliveries don't enter the fleet in sufficient quantities, which is essentially what the industry experienced starting in 2003. However, at that time, the positive shock to demand from China's voracious appetite for commodities led to an extreme spike in rates in 2006 through 2008, which also brought with it a surge in new orders for ships. Since late-2008 the dry bulk industry has been suffering from a massive supply hangover." Companies included in this report are: Baltic Trading Limited

: Initiating Coverage of BALT with a Buy Rating and $6 Price Target Dampskibsselskabet NORDEN A/S

: Initiating Coverage of DNORD with a Buy Rating and DKK 190 Price Target DryShips, Inc.

: Initiating Coverage of DRYS with a Buy Rating and $6 Price Target Diana Shipping Inc.

: Initiating Coverage of DSX with a Buy Rating and $11 Price Target Eagle Bulk Shipping, Inc.

: Initiating Coverage of EGLE with a Reduce Rating and $0.75 PT Excel Maritime Carriers, Ltd.

: Initiating Coverage of EXM with a Reduce Rating and $0.75 Price Target Genco Shipping & Trading Ltd.

: Initiating Coverage of GNK with a Reduce Rating and $2.50 Price Target Navios Maritime Holdings Inc.

: Initiating Coverage of NM with a Buy Rating and $5 Price Target Navios Maritime Partners L.P.

: Initiating Coverage of NMM with an Accumulate Rating and $16 Price Target Paragon Shipping Inc.

: Initiating Coverage of PRGN with a Neutral Rating and $0.75 Price Target Safe Bulkers, Inc.

: Initiating Coverage of SB with a Buy Rating and $8 Price Target Star Bulk Carriers Corp. (

: Initiating Coverage of SBLK with an Accumulate Rating and $1 Price Target