Transportation

The Mysterious Rise Behind NewLead Shipping

Dry Bulk Ship
Wikimedia Commons
NewLead Holdings Ltd. (NASDAQ: NEWL) jumped from a penny stock last Thursday when the dry bulk shipping company enacted a one-for-50 reverse stock split so that the company’s shares would meet the minimum $1 per share requirement for a listing on the Nasdaq.

On Monday, the firm announce that it had taken delivery of a new eco-type Handysize vessel, the NewLead Albion, a dry bulk carrier of around 32,000 deadweight tons. A second Handysize vessel is scheduled for delivery in July. The company paid $18.25 million for each of the vessels, and their current market value, according to NewLead, is $20.25 million.

The eco-type ships are both more fuel-efficient and emit less carbon dioxide than earlier vessels. Shippers have been relying on slow-steaming to keep costs down as demand for shipping has slowed. The Baltic Dry Index has tumbled 55% since the beginning of the year and is currently at around 1,022. That is only a hair above the 1,000 starting value of the index in 1985.

NewLead’s shares were trading at around $3.47 in the noon hour on Tuesday, up more than 76% for the day after rising nearly 300% Monday.

ALSO READ: Does a Wider Trade Deficit Even Matter?

Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)

Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.

Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.

Click here now to get started.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.