Commodity Boom Bursts: The Baltic Dry Index, a measure of commodity-shipping costs, fell to its lowest since August 2005 as the credit squeeze sapped companies’ ability to finance cargoes. U.S. housing slump has
fuelled a financial tsunami, which is now landing in emerging market followed by a full-fledged commodity boom burst. There is no quick recovery to this recession and dry bulk shipping which is the main carrier for commodities like iron ore and coal, is onslaught of pessimism.

�� Steel and Coal Output Cut: Steel makers in Japan and China are cutting output and push their shipments of iron ore backward as demand evaporates. Even when there is demand, importers cannot get letter of credit
or trade financing from their bankers to import cargoes. The lack of financing of global trade has temporarily brought the spot market to a virtual standstill. Another main bulk commodity - coal also hit hard by demand slump for electricity, a barometer of China’s industrial demand.

Currently trading at 14 cents, the stock seems a bargain. Target price of 25 cents reflects a 2-3 years’ downturn period for shipping. “Trading Buy”.