Genco Shipping & Trading Ltd - GNK

This firm transports iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes around the world.

Anyone got this? The dividend looks really high, which normally I’d be a bit concerned about but the financials look ok from what I can see online.

Yes! I’ve just started purchasing, pound cost averaging to reduce risk. Up to 40 shares now, still my smallest position.

But a 16% dividend with only 30% payout ratio and excellent margins, ROE and cash flow sounds like a screaming buy to me!

A price to book value of only 0.56. Benjamin Graham would surely be proud :joy:

The main reason for the drop is surely concerns around supply shortages easing, and fuel costs continuing to increase, which will both eat into margins. But I believe there’s a decent margin of safety here at this level.

Plus, for the technicals investor, although well below both the 200 and 50-day moving average, there is a strong support line at ~12.57. It could trade in a range between that and the lower support at ~10.94 for a while now. If it stay in that range I will continue to PCA about 10 shares per week personally.

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Wish that I had bought more shares in GNK.

Currently a 13% gain on paper, but it’s the dividend that was the real selling point.

The question is, is it worth buying more at this price? I don’t feel like it’s a risky stock, but I would be more comfortable buying around the recent lows of ~$13.