Stock: PANL
Rating: Strong Buy
Author: Waleed M. Tariq
Overview
- Pangaea is a dry bulk shipping firm.
- In 2021, it ran 55 ships a day and moved 27 million tons.
- Their vessels are chartered for our contract business.
Bullish
- The stock has surged due to the shipping industry’s growth and the company’s record year.
- All regions raise rates, keeping the market strong.
- I’m bullish on the stock since it’s undervalued, has growth potential, and a 6% yield.
Bearish
- Bear markets can weigh hard on small firm shares, and the volatility might scare off cautious investors.
Financial forecasts vs. market sentiment
- In Q1 2022, the firm above market projections with $0.35 EPS vs. $0.20. High MRQ profits boost current quarter EPS to $0.60 from $0.36.
- Dry bulk fundamentals are thriving despite the macroeconomic environment’s recessionary fears and declining growth expectations.
Valuation
- The company’s share price is 10% below its book value. PANL’s actions would cost $19 per industry median.
Conclusion
- Low valuation, sustained dividends, and good growth prospects make the company a value, income, and growth investment.