DNB Markets Initiates Coverage on Genco Shipping & Trading

According to a research report this morning, DNB Markets initiates a Sell rating on Genco Shipping & Trading along GNK with a $2.00 PT. DNB Markets explained, “Our SELL recommendation and target price are based on 1) a negative NAV of USD5.9/share, 2) estimated negative cash balance as per end Q4 2013, 3) covenant standstill expiry in Q1 2013, which in our view will result in new equity at a discount to the share price, 4) deeply inflated book values of cUSD1.4bn.” Genco Shipping & Trading closed Friday at $3.22.