1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (245) 

Wilbur Ross Is Bullish on Shipping Companies

November 27, 2012 | About:

Billionaire distressed debt investor Wilbur Ross is continuing to look for more investments in the battered shipping industry.

Ross is famous for combining distressed steel companies that he later sold to ArcelorMittal (MT). He also restructured Corus loans in south Florida which has been a massive success.

Last year Ross said that highly leveraged operators without long-term contracts would most likely go out of business. He saw opportunities in dry bulk shippers and container companies.

Far more distressed sales of ships were likely, Ross said. On some tanker routes, spot-market rates have fallen so far in recent weeks that shipowners have been paying customers to let them transport their cargo.

“The number of distressed shipping deals grows daily, mostly from individual owners of small numbers of ships,” Ross said. “We do expect further opportunities over the next 12 months. You never know where the exact bottom is until after the recovery has begun, but it is clear that we are already much closer to the bottom than the top.”

The shipping sector stocks have been battered in 2012 and the pain continues as tax loss selling accelerates. For example, DryShips (NASDAQ:DRYS) and Box Ships (TEU) are down about 50% off their 2012 highs.

Rating: 2.3/5 (4 votes)


Please leave your comment:

Performances of the stocks mentioned by matsandalex

User Generated Screeners

jlhpersonalJason's Greenblatt - Updated L
dosowsky1Fast Revenue Growth
Kbannon77All Stocks US
Kbannon77All Stocks
opadovaniP median2
carter2u2Small Cap No Debt
bkw82Predictable/ebitda 10/52 week
pbarker46Hist. High Yield
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat