Scorpio Bulkers Inc. - Like A Bull In A China Shop

Dry cargo start-up Scorpio Bulkers Inc. (SALT) has managed to go from zero to one hundred in less than twelve months. Since its incorporation in March 2013 it has grown to a serious contender in the dry cargo shipping industry. Scorpio Bulkers has raised more than $1.2 billion in gross proceeds in four equity offerings, including a fully subscribed IPO last December. Today, it sports a market capitalization of almost $1.4 billion. Despite its over-ambitious $2.8 billion new-building program, it has raised sufficient cash to keep its leverage ratio below 60% without any further equity offerings.

Is this folly or sanity? Only time will tell whether Scorpio Bulkers will become the most successful story this side of Frontline Ltd. (FRO), or be blown apart. But if potential investors like the odds for a strong recovery in dry cargo shipping over the next two years, they may want to take a good look at Scorpio Bulkers.

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