Tuesday 1 May 2012

GNK - the sinking shipper, still taking on water

Genco is a good representation of the Global shipping industry. Yesterdays results were dire, and the stock is reacting accordingly.

GNK, daily


Summary

The company does not make money, hopefully it will survive any 'global economic collapse wave'2', but it sure needs to reign in its operating costs. Right now, its future is in serious doubt. At the moment, it looks like it'll end up turning into a '$1 lottery play' later this summer. Probably not quite down to $1...but $3 seems probably, if not $2.