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QuestionsCategory: Exit StrategiesHi Fifth Person I have attended your seminars and Malaysian Bulk Carriers Berhad was mentioned,after some checking they do make profit in spite of industry slow down and declared divined and has low debt and I bought some.Is the Blaticdry Index still a recovery story or there are some changes to it example oversupply of carriere when the industry improve and now not worth keeping it or other reasons
Ong Leng Huat asked 8 years ago
1 Answers
Victor Chng answered 8 years ago

Hi Leng Huat,  
From our experience, no one can predict when the Baltic Dry Index (BDI) will recover but if you are looking to invest in this industry, you should look for fundamentally strong companies that can survive this current down-cycle. You may want to ask yourself these following questions:
1. Does Malaysian Bulk Carriers (MBC) have a strong balance sheet to survive this downtime compared to their peers?
2. Is MBC’s management a good capital allocator?
3. Does MBC manage their fleet more effectively than their peers which results in them making profits while their peers don’t?