The “berserk” iron ore market has created a tsunami of utter idiocy and short-covering across many sectors, most egregiously – dry bulk shippers. DRYS is up 18%, DSX up 20%, and NM up 25%, but Eagle Bulk (EGLE) is the big winner as the mania underlying iron ore combined with an earlier filing said to amend forebearance as the company tries to find financing alternatives, spiked the stock up 340% in 2 days.
Up 340% in 2 days… back to unchanged on the year…
Eagle Bulk Shipping Inc. owns a fleet of dry bulk vessels and transports a range of major and minor bulk cargoes. The Company transports iron ore, coal, grain, cement, and fertilizer along worldwide shipping routes.
And the utter farce is that while Iron ore prices surge on the heels of China’s NPC, they ironically stated that they will rationalize capacity – thus implying notably less exports (and therefore less demand for dry bulk shippers)
via Zero Hedge http://ift.tt/1QBTc6M Tyler Durden