In late May, the stock of Seanergy Maritime Holdings, a Greece-based company focused on Capesize shipping, hit record lows after reporting weak first-quarter results due to seasonal factors. Despite the continued decline in Capesize charter rates, the company’s common shares have experienced a recent rally of approximately 20% over the past few weeks.
After Wednesday’s trading session, it was revealed that an entity associated with Konstantinos V. Konstantakopoulos, Chairman and CEO of Costamare Inc., has acquired a new 5.1% stake in Seanergy Maritime. Although a strategic transaction seems unlikely, this move by Mr Konstantakopoulos could attract other shipowners to invest in Seanergy Maritime’s common shares, similar to the recent investment made by Danaos Corporation in Eagle Bulk Shipping.
Although the discount to net asset value has narrowed recently, I maintain my “Speculative Buy” rating on Seanergy Maritime’s shares, considering the potential for further accumulation by Mr Konstantakopoulos and the likelihood of other shipowners following suit.
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Source: Seeking Alpha
