Why Eagle Bulk Shipping Stock Just Popped 12%
Shares of dry bulk shipper Eagle Bulk Shipping (NYSE: EGLE) are soaring this morning, up 11.6% through 11 a.m. ET, on news of a big merger. Last night, after close of trading on the NYSE, Eagle announced that it will merge its business with rival shipper Star Bulk Carriers (NASDAQ: SBLK).
Star Bulk stock, by the way, is up only 2.2%.
The Baltic Dry Index (which tracks dry bulk shipping rates) hit a recent 18-month high of 3,192 earlier this month before retreating pell-mell to just 2,509 this morning -- a 22% drop over barely one week. This suggests the rally in dry bulk shipping rates could be nearing its end.
Source Fool.com
