Let’s assume that the nameless analysts below are correct in that, “On average, analysts predict that Safe Bulkers, Inc. will post $0.38 EPS next quarter. The company has a market cap of $569.8 million and a price-to-earnings ratio of 5.04.” Is the Safe Bulkers dividend threatened?
Safe Bulkers has been paying a quarterly dividend of $0.15 per share for two years. Safe Bulkers dividend payout ratio will equal 39.4% if they continue to payout $0.15 per quarter. This does not immediately threaten Safe Bulkers dividend. I would take over a year of earnings erosion to threaten SB’s dividend.
Make no mistake, there is a ton of dry bulk tonnage (pun intended) coming into the market. Many dry bulk shippers ordered ship to be built during the central bank fueled boom times of 2006-2007. The Baltic Dry Index was at record high levels. Then the central bank fueled bust came in 2008-2009. Suddenly there was no need for all the ships being built in the shipyards. Many dry bulk companies cancelled or delay delivery. The delayed deliveries are sliding down into the water when the BDI is at near record lows. I read last night than the tonnage available in the world wide fleet is about to be nearly doubled. (http://seekingalpha.com/article/250232-dht-the-silver-lining-in-the-shipping-cloud )
However, the need for Capesize dry bulk ships goes up if the Suez Canal gets shut down by Egyptian turmoil.
Safe Bulkers, Inc. (SB) Downgraded by FBR Capital (FBCM) to “Market Perform”
February 1st, 2011 • View Comments • Filed Under • by ABMN Staff
Equities research analysts at FBR Capital (NASDAQ: FBCM) downgraded shares of Safe Bulkers, Inc. (NYSE: SB) from an “outperform” rating to a “market perform” rating in a research note to investors on Monday. The analysts currently have a $9.00 price target on the stock.
Separately, analysts at Zacks Investment Research downgraded shares of Safe Bulkers, Inc. from a “neutral” rating to an “underperform” rating in a research note to investors on Wednesday January 26th.
Safe Bulkers, Inc. (Safe Bulkers) is an international provider of marine dry bulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along global shipping routes for some of the global consumers of marine dry bulk transportation services. As of January 31, 2010, the Company had a fleet of 13 dry bulk vessels, with an aggregate carrying capacity of 1,077,900 deadweight tons (dwt) and an average age of 3.6 years. The fleet consisted of four Panamax vessels, three Kamsarmax vessels and six Post-Panamax class vessels. The Company’s subsidiaries include Efragel Shipping Corporation, Marindou Shipping Corporation, Avstes Shipping Corporation, Kerasies Shipping Corporation, Marathassa Shipping Corporation, Pemer Shipping Ltd., Petra Shipping Ltd., Pelea Shipping Ltd., Staloudi Shipping Corporation, Marinouki Shipping Corporation, Soffive Shipping Corporation, Eniaprohi Shipping Corporation and Eniadefhi Shipping Corporation.
Shares of Safe Bulkers, Inc. (NYSE: SB) traded up 2.13% during mid-day trading on Tuesday, hitting $8.65. Safe Bulkers, Inc. has a 52 week low of $6.50 and a 52 week high of $9.00. The stock’s 50-day moving average is $8.63 and its 200-day moving average is $8.07. On average, analysts predict that Safe Bulkers, Inc. will post $0.38 EPS next quarter. The company has a market cap of $569.8 million and a price-to-earnings ratio of 5.04.
Original link to article: http://www.americanbankingnews.com/2011/02/01/safe-bulkers-inc-sb-downgraded-by-fbr-capital-fbcm-to-market-perform/#
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