Tuesday 31 July 2012

GNK - almost on the sea bed

Genko (GNK) shipping is not far off zero. Its been in a decline for over a year, today's 8% drop is yet another nasty wave over the deck for the SS GNK.


GNK, daily


Summary

I don't expect GNK to last this next deflationary collapse wave. I'd guess someone will either launch a bid in the next 6-12 months - at a price of $2 to $4, or merely wait to pick up the scraps after what might be eventual bankruptcy. The latter is a bold assertion, but then GNK is still not profitable, some 4 years after the financial collapse supposedly ended.

See financial stats on GNK  A market cap <100 million, with debt of 1.7bn or so. Not good at all.

Other shippers like EXK, OSG, and DRYS, all have charts broadly the same. They remain one of the ultimate warnings that 'this global economy remains SICK'.