The research house said PBS could play either the catch up of Handysize to the massive rally of Capesize segment, or management's ability to grow earnings even if the recent rebound in Capesize rates is only seasonal.
Jefferies said PBS could play both the offensive and defensive angle to the recent dry bulk rally. If the recent 300% rally of Capesize segment since June is sustainable,
Handysize, which has been a laggard in this rally, could catch up, particularly since it has better global exposure than the more China focused Capesize segment. If this Capesize rally turnout to be another short lived event, PBS could still grow earning following management's fleet expansion strategy. (KL)
Publish date: 10/09/13