Marine Money Results & Picks

Of the fortunes to be made in shipping securities, very nearly none were made in 1994. However, the few who prospered included some of last December’s Marine Money picks. International Shipholding, for example, did remarkably well. Its stock price skyrocketed 75% and earnings estimates are up (40% for 1994), according to investment broker Furman Selz Inc. Other picks like Carnival Cruise, Actinor and Kvaerner struggled through, adding vessels, contracts, or increasing ownership, perhaps.

But, 1994 was not a banner year for investing in shipping stocks – certainly nothing like 1993′s investment fury. Nevertheless, the future is looking bright in 1995 with the expectation that those which have been stalled, like Western Bulk Shipping, will log in a stellar year in 1995. Western Bulk stock fell 17.4% between 1992 and 1993, and stayed there for most of 1994. But Western Bulk, with its fleet of modern Handymax vessels, is well positioned to take advantage of growth in the Far East economies, and its vessels are currently operating with 13-14% return on dayrates. The Handysize markets have shown stability not witnessed in other shipping segments; and, we think Western Bulk always deserves attention.

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