Stock Analysis: Pangaea Logistics Solutions

By Fredrik Arnold

Monday, February 27, 2023 11:28 PM EST

cargo ships docked at the pier during day

Image Source: Unsplash

Pangaea Logistics Solutions Ltd bears the ticker symbol PANL, and this is my first mention of Pangaea Logistics for this new Viking Portfolio, nor for any of my previous seven dog of the week folios.

Pangaea Logistics Solutions Ltd and its subsidiaries provide seaborne dry bulk transportation services. It transports dry bulk cargos including grains, coal, iron, ore, pig, iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone.

The firm's services include cargo loading, cargo discharge, vessel chartering, voyage planning, and technical vessel management.

The company derives all of its revenues from contracts of affreightment, voyage charters, and time charters. Its strategy depends on focusing on increasing strategic contracts of affreightment, expanding capacity and flexibility by increasing its owned fleet and increasing backhaul focus and fleet efficiency.

As of March 16, 2022, the company owned and operated a fleet of 25 vessels.

Pangaea Logistics Solutions, Ltd. was founded in 1996 and is based in Newport, Rhode Island.

Three key data points gauge PANL, or any dividend paying firm:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

PANL Price

Pangaea Logistics Solutions Ltd price per share was $6.49 at Friday’s market close. In the past year, PANL share price increased by $1.61, or about 33%.

If PANL stock trades in the range of $4.00 to $8.00 this next year, its recent $6.29 share price might reach $7.20 by next year. That upside estimate of $0.71 is $0.03 less than the average past five year’s annual price upsides.

Pangaea Logistics Solutions most recent quarterly dividend of $0.10 casts a forward annual yield of 6.16%.

PANL Returns

Adding the $0,40 annual estimated

PANL dividend to my one-year price upside estimate of $0.71 reveals a $1.11 potential gross gain estimate per share.

At Friday’s $6.49 closing price, a little under $1000 would buy 154 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.06 per share.

Subtract that maybe $0.06 brokerage cost from my estimated $1.11 gross gain makes a net gain of $1.05 X 154 shares = $161.70 for a 16% net gain including the 6.16% annual dividend yield.

In the next year our $1K investment in shares of Pangaea Logistics Solutions Ltdcould generate $61.60 in cash dividends. Furthermore, a single share of PANL at Friday’s $6.49 price is near 10 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to buy Pangaea Logistics Solutions Ltd shares, based on their dividends for 2023. The current dividend from $1K invested is 9.5 times higher than the PANL single share price. Consider yourself alerted.

Now is the time to consider PANL shares.

All of the estimates above are speculation based on the past history of investment in shares of Pangaea Logistics Solutions Ltd. Only time and money invested in this stock will determine its future market value.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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