Back in August 2010, I wrote my very first article for Seeking Alpha on Safe Bulkers, Inc. (SB), suggesting to readers that the risk/reward for an investment in the company was disproportionate. I argued that SB had the potential to reward shareholders even if industry conditions continued to get worse. A lot has happened since then and I thought that it would be worth re-evaluating the investment case for SB.
So, how has my previous investment thesis turned out? Not great, but not terrible either. The total return for holding SB over this period of time was 2.3% (dividends not reinvested). This return is hardly the phenomenal growth story of other more "exciting" investments, but it's pretty impressive when you consider the industry developments. I was initially banking on a recovery in rates through aggressive scrapping and the cancellation of oustanding orders
Read »
