Baltic Dry Index At New Low : Shipping Sector Sinking Lower

LONDON, Nov 20 (Reuters) – A slump in dry bulk shipping is set to worsen as the meltdown in global commodities and too many ships free for hire rock the sector used by investors to gauge the health of world trade.

Slower coal and iron ore demand from China – the world’s biggest industrial importer – have battered the dry bulk sector, already in the midst of its worst ever downturns that is expected to extend well into next year.

This week the Baltic Exchange’s main sea freight index , which tracks rates for ships carrying dry bulk commodities and seen by investors as a forward-looking indicator of global industrial activity, plunged to an all-time low.

A slump in oil and other commodity prices, due to slowing Chinese demand, has widely been seen as one of the reasons for U.S. Federal Reserve hesitancy in tightening policy.

“Dry bulk demand is very much dependent on the world economy,” said Symeon Pariaros, chief administrative officer of Athens-run and New York-listed shipping firm Euroseas.

“The slowdown in the world economy has caused both dry bulk and container shipping to suffer a lot lately. Euroseas, having exposure in both these sectors, is facing the consequences of this very low rate environment.”

There have already been casualties. In September, Japanese bulk carrier Daiichi Chuo Kisen Kaisha filed for protection from creditors. This followed private equity backed Global Maritime Investment Cyprus Ltd, which filed for Chapter 11 bankruptcy protection in the United States.

While prospects for commodities markets are shaky, the dry bulk freight players will also need to contend with more ship deliveries hitting the water in coming months.

“More vessels have to be scrapped, no additional newbuildings (new ship orders) and further delay deliveries – all these take time, more than one year, implying that in the interim the market will be ugly, and a great number of shipowners will not have the cash to bridge the weak market,” said Basil Karatzas, head of New York consultancy and brokerage Karatzas Marine Advisors & Co.

“Some may be flexible to get money from funds for working capital … and otherwise sacrifice some equity to save the business, but many small shipowners will be washed out.”

Barron’s Energy Review : A Whole Lot of Shorting Going On

Chesapeake Energy: A Whole Lot of Shorting Going On

Sterne Agee CRT’s Tim Rezvan is feeling bullish about Chesapeake Energy (CHK), which he upgraded on June 29. One of the reasons: The latest short interest data. He explains:

Daniel Acker/Bloomberg News

Largest Increases in Short Interest Among Coverage Names:PetroQuest Energy (PQ), Cheasapeake, Noble Energy(NBL). The largest increase in short interest came from PetroQuest Energy, which had a 16.1% increase to 7.2 million shares (11.0% of shares outstanding, 5.0 days to cover). Other large increases were seen in Chesapeake Energy, which had a 14.1% increase to 185 million shares (27.8% of shares outstanding, 8.1 days to cover), and Noble Energy, which had a 10.3% increase to 17.9 million shares (4.6% of shares outstanding, 4.1 days to cover).

June 30 Data Likely Represents Peak of Bear Case Fervor for Chesapeake Shares. Our June 29 upgrade of Chesapeake shares to Buy from Underperform reflected what we believed was oversold conditions, and month-end short interest data validates this thesis. Short interest in Chesapeake shares increased 14% to 185 million shares from mid-June to the end of June (+163% from the end of February). We expect profit-taking from shorts to provide further support to Chesapeake shares into 2Q earnings

Here’s a chart of the short interest in Chesapeake, which as the analysts note is just massive:

Shares of Chesapeake Energy have tumbled 3.4% to $10.98 at 9:57 a.m. today, while Noble Energy has fallen 0.3% to $38.94, and Petroquest Energy has gained 1.7% to $1.75.

Read more on protecting your assets at

Blackberry – BBRY Fever $30 Target ?


published today July 8,2014


  • BlackBerry has surprised investors with a series of good news lately.
  • BlackBerry’s house cleaning operation last year has been successful, and set the ground for future growth.
  • Once BlackBerry reports operating cash flow profitability, investors will pile into the stock.
  • Investor sentiment is gradually changing, which is a key requirement for higher stock prices.

a general contempt , sadness and scorn for the once mighty smartphone maker is being replaced with calls of a rise due to the new management, short squeeze and reassessment of the prospects of the ” new ” BBRY.

here is a sample from Seeking Alpha Article list for Blackberry

BlackBerry defends the Passport
Shares of Canadian handset company BlackBerry fell 5%, giving back nearly all of Monday’s gain. BlackBerry has been an especially volatile stock in recent sessions, so its decline is not surprising.

Late on Monday, BlackBerry published an official blog post defending the design of its upcoming handset, the Passport. The BlackBerry Passport has received a notable level of attention in recent weeks due to its unconventional design: a large phone with a physical keyboard and square-shaped body.

BlackBerry argues that the Passport’s square screen is ideal for productivity — at 4.5-inches, it isn’t as large as some of the larger Android handsets on the market, but the added width makes it easier for users to view documents.

The Passport alone won’t dictate BlackBerry’s future, but success here could help the company erase its losses. Last quarter, the company lost money, though less than analysts had anticipated. BlackBerry’s management aims to hit breakeven by the end of the year.

NEWL- The War Of Fear and Greed On Display


A near death experience forced the Company to protect its Nasdaq listing by a reverse split . That is in order to maintain a trading price of more than $ 1.00 it consolidated the shares – 50 ” old” shares selling at  6 cents were to be exchanged for one share which in theory would trade at about $3.00 ( 50 times 6 cents).

Instead the shares plunged to 65 cents – then went on a wild ride- back up to over $3.50 and back down in the last three days.

The company has arranged the purchase of two new ships and manages others . It appears to me that management  wants to rebuild a shattered entity. In the meantime the stock has become a plaything for penny players. It also has a coal mine in the U.S.

I am not a penny stock player  but here is a down and out member of the down and out shipping sector that appears worth some spec money.The Baltic Dry Index which in 2008 before the decline was over 10,000 is now below 1000. The sector – as I have written is one to watch – but not invest in at this time . When the turn comes it will be for years . The turn depends on a return to growth in China, iron ore and grain shipments that will trace an upturn in the world economy.- but most important is China which appears to be growing again.

Thursday I purchased 1000 shares at $ 1.60 following a dramatic decline during the day from near $3.00 to the $1.60 level.It appears that panic set it and I expect that on Friday cooler heads will prevail and the stock will recover as bargain hunters ( and spec players) try to calculate a value for a beat up stock.

You can have the advantage of Jack A. Bass Managed Accounts



Call Jack direct at 604-858-3202

Monday – Friday 9;00-5:00 ( Pacific Time)

There isno cost or obligation


Above Average
As of 30 May 2014 at 9:43 AM EDT.


Open 1.80 P/E Ratio (TTM)
Last Bid/Size 2.01 / 2 EPS (TTM) -56,034.36
Last Ask/Size 2.02 / 59 Next Earnings
Previous Close 1.67 Beta 2.16
Volume 3,962,252 Last Dividend
Average Volume 21,173,255 Dividend Yield 0.00%
Day High 2.10 Ex-Dividend Date
Day Low 1.76 Shares Outstanding 10.1M
52 Week High 8,235.00 # of Floating Shares 3.06757M
52 Week Low 0.3788 Short Interest as % of Float 1.65%

Trading Alert : Diana Shipping Short Squeeze

Jack A. Bass Managed Accounts are enjoying the shipping sector recovery – shorts are paying the price of our success.


Above Average
As of 19 Sep 2013 at 10:08 AM EDT.


Open 12.28 P/E Ratio (TTM) 109.1x
Last Bid/Size 12.47 / 8 EPS (TTM) 0.11
Last Ask/Size 12.48 / 3 Next Earnings 20 Nov 2013
Previous Close 12.06 Beta 1.42
Volume 340,200 Last Dividend
Average Volume 1,709,194 Dividend Yield 0.00%
Day High 12.50 Ex-Dividend Date
Day Low 12.22 Shares Outstanding 82.2M
52 Week High 13.24 # of Floating Shares 67.12071M
52 Week Low 6.45 Short Interest as % of Float 3.41%



1,822.0082.00 4.71%

Herbalife And Carl Ichan ?

Friday night cocktails at the Carl Icahn Lab
Friday night cocktails at the Carl Icahn Lab (Photo credit: throgers)

HLF : NYSE : US$38.77

Herbalife was in the news yet again Friday after Carl Icahn said in a regulatory filing that he had increased his stake in the company to 14 million shares, or roughly 13% of the company’s outstanding shares.

After weeks of speculation over exactly what the famed corporate raider might be doing, Icahn spoke up and put himself on a collision course with William Ackman, a rival activist investor who called Herbalife a house of cards and said he sees the share price going to zero.

The two men famously tussled on cable television in late January when Icahn called Ackman a “major loser” and warned him of trouble ahead in the form of a major short squeeze. Icahn said he wants to meet with Herbalife’s management “regarding the business and strategic alternatives to enhance shareholder value, such as a recapitalization or a going-private transaction.”

The company said, “We welcome all parties who see the same value in Herbalife that we do.”