The recent increase in dry-bulk and oil-tanker shipping rates has led to a number of public offerings in the sector, Cramer said Thursday. Too bad the interests of shareholders and management at these companies are totally in opposition.
Private ship owners and their banks right now are under some serious financial stress, so they’re forming new companies and selling them into the open market in order to raise cash. They’re hoping to capitalize on the industry’s turn up, Cramer said, but what they are really doing is “taking advantage of investors.”
- Cramer's Top 10 Emerging-Market Stocks
Here are the three stocks that investors should avoid:
- Baltic Trading
- Crude Carrier
- Alma Maritime