EXM - EXcel Maritime Carriers (low P/BV, P/E, high EPS)

Discussion in 'Stocks' started by zxd, May 26, 2010.

  1. zxd


    BV roughly $16+

    Trading at 5.58 right now

    EPS estimates for FYE 2010 is 1.10, that's a P/E ratio of about 5

    Current Assets/Current Liabilities less than 1, however, this was the case in the prior year as well and debt was actually paid down.

    Can anyone tell me why this would not be a buy? They are a dry bulk shipping company based in Greece. (yes I know Greece...)
  2. ?...there's too much shipping capacity in the world, an expectation of continued recession, shipping companies tend to trade at "very low" P/E ratios and being associated with Greece would make matters any better either. :(
  3. Because the entire shipping group is weak and that makes EXM a total dog. Sad, but you need other buyers other than yourself to push up price.
  4. zxd


    I'm learning more about shipping companies and seeing why the numbers are the way they are. Most shipping companies trade below BV, I figure because the ships are recorded at historical cost and valuable, but if the company went bankrupt they may not be so liquidable (is that a word?).

    Furthermore, EXM seems like the one of the weaker ones in the group. I'm looking into Genco Shipping and Trading Ltd right now and taking a long position on it, P/E about 4-5, below BV. Need to do more research.