SOURCE: Paragon Financial Limited

Paragon Financial Limited

November 30, 2011 08:16 ET

Dry Bulk and Tanker Stocks Stuck in the Doldrums

The Paragon Report Provides Equity Research on DryShips & Frontline Ltd.

NEW YORK, NY--(Marketwire - Nov 30, 2011) - Dry bulk shipping and oil tanker stocks have been volatile of late as weaker demand has been weighing on the sector, while an excess of vessel supply has outpaced global oil demand. "It is estimated that there is an excess tonnage of 15 to 20 per cent floating in the global market today. Freight rates will remain dull in the short to medium term," A.R. Ramakrishnan, Managing Director of Essar Shipping, explains. The Paragon Report examines investing opportunities in the Shipping Industry and provides equity research on DryShips, Inc. (NASDAQ: DRYS) and Frontline Ltd. (NYSE: FRO). Access to the full company reports can be found at:

The Shipping industry was hammered last week after Frontline Ltd. reported a third-quarter net loss and said it may run out of cash early next year unless the broader market recovered. "With the continued weak markets, we see ourselves in a very difficult situation," said CEO Jens Martin Jensen on the company's earnings call. "This combined with the reduced crude shipments into America, which have reverted, and usual summer dullness makes this third quarter one of the worst quarters for a long time in the crude markets."

Frontline Ltd. posted third-quarter losses of $166.2, compared with a net income of $12.2 million during the same period last year.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the shipping industry register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Dryships' drybulk fleet principally carries a variety of drybulk commodities, including major bulk items, such as coal, iron ore, and grains, and minor bulk items, such as bauxite, phosphate, fertilizers and steel products. DryShips was one of the few listed ship-owning companies to make net profits in the third quarter. While the company's drybulk shipping and oil tanker division suffered significantly in the quarter, the company's offshore drilling division continues to be buoyed by high oil prices and rising expenditures from oil companies.

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