Keyword results: Baltic Dry Index

Red Flags at Night: Goldenport Holdings Inc suspends debt service payments

Main market listed shipping company Goldenport Holdings (GPRT) has featured before in the Red Flags at Night column (see HERE) for slipping out bad news at no-one-is-watching o’clock, but yesterday’s offering, at 5pm on a Friday, looks grim. We have a trading update and the announcement that it can’t service its debts. Uh-oh.

GKP
GKP

Three oil calls revisited; Gulf Keystone, Bowleven & President Energy Part 1

Two and a half years ago I wrote this article, outlining the apparent direct relationship between the movement of the price of oil and the introduction of Quantitative Easing. Even though I’ve had this at the back of my mind since, I failed utterly to anticipate the recent price collapse of the black stuff, in response to the withdrawal of QE by the Federal Reserve. This should have been an incredible trading opportunity, not least because the move appears to have wrong-footed so many in the market. In grappling for an explanation, most commentators have settled on a consensus that oil’s fall from Grace is down to fundamental reasons and the lack of global growth. Anyone who has followed the Baltic Dry Index over the last few years will know this is nonsense. Given that the outlook for the price of oil looks decidedly weak, it’s time to revisit three stocks I assessed over the summer and look for any possible signs of encouragement.

Shipping

Encouraging bump in the Baltic Dry

Over the last three weeks, the Baltic Dry Index has spiked nicely higher. Currently reading at 1,147, this is still short of the 1,600 level associated with reasonable global growth, but is a market improvement on the 750 level recorded in late July. Could this improvement be a sign of better things to come for mining stocks?

Shipping

Baltic Dry Index waves a red warning flag

Over the last few days, I’ve written a series of pieces identifying potential points to go long the Dow, FTSE100 and German DAX. Further selling yesterday afternoon and evening has pulled the three indices closer to my targets. However, it is another index which is flashing a warning sign that all is not well with the story of global growth; the Baltic Dry Index.

FRX
FRX

What next for Ferrex?

Last Wednesday, Ferrex (FRX), delivered for its shareholders some most unwelcome news, as it announced that Anglo American and Kumba Iron Ore had decided not to proceed with their proposed funding of the Mebaga Iron Ore Project, based in Gabon. Unsurprisingly the company’s share price fell c.40% in response, but it has since recovered from a low close of 1.025p to trade at 1.32p, last seen. This values the business at £12.3million and the question now is can the company shake off last week’s disappointment and demonstrate the value of its portfolio, which Managing Director Dave Reeves believes the market has largely missed?

Shipping

Is the Baltic Dry Index, at 987, warning you to sell in May?

It’s been too long since I last looked at the Baltic Dry Index. This morning I almost wish I hadn’t. According to the latest reading of the Baltic Dry, which tracks 23 of the world’s busiest shipping lanes, it stands at 987, having slumped in early April. This does not bode at all well for the general economic outlook and is particularly unwelcome news for mining stocks.

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