Star Bulk loses contract, dividend cut?
Star Bulk Announces Updated Employment Status of Star Beta - International Business Times -.
When I wrote about Star Bulk Shipping (SBLK: 3.59 -0.11 -2.97%) last month I said that this was definitely a high risk stock as indicated by its 20% yield. The positive for the company was the fixed contracts for its dozen bulk carriers that promised stable revenue for the next couple of years. With the news release linked above the company announced one of their contractors has gone bankrupt and put in doubt the receipt of $110,000 per day of revenue. Losing $10 million in quarterly revenue is a big hit for a company this size. In the current shipping environment it would be impossible to release the ship at any where near the lost contract rate.
With this news I am “selling” the SBLK position from this site’s Opportunities Portfolio. The portfolios on this site are a hypothetical way to track the stock positions I believe will provide superior long term returns.
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