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?
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