On 30 Sep, I said "A friend asked me what I think of Courage Marine and I told him I like its numbers and I like how the BDI seems to have stabilised at $2,500 thereabouts. I feel that Courage Marine shouldn't have bad news with regards to earnings. The main reason why I have not really talked about Courage Marine very much recently is the lack of anything newsworthy." Things have hardly changed since.
The BDI is currently at US$2,696 which is quite comfortable and at an investor meeting on Thursday, Chairman Hsu Chih-Chien said he was very bullish on the ability of China in particular to continue driving the market for bulk cargo going forward.
“Our Capesize vessel mainly transports coal, bauxite and iron ore while our four Panamax ships focus on thermal coal mainly for the energy needs of China. We feel there is huge potential for growth in the Chinese coal market,” he added.
“This country still relies on coal for the vast bulk of its energy needs. So if you want to know if I expect any slowdown in China’s coal demand, I would say – Not in my lifetime,” Mr. Hsu said.
My opinion that Courage Marine is a good investment at current prices has not changed and from what was revealed on Thursday, it seems that Courage Marine could continue to deliver a good set of numbers in time. I remain vested.
Read complete article in Next Insight here.
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