D/S Norden is the largest dry bulk shipper by market cap.
Dampskibsselskabet "NORDEN" A/S
Dampskibsselskabet "NORDEN" A/S is an independent shipping company incorporated in Denmark and listed on OMX Nordic Exchange Copenhagen A/S. The market capitalisation at 29 November 2007 was DKK 22.6 billion. NORDEN was founded in 1871, making it one of Denmark’s oldest internationally operating shipping companies. NORDEN operates in dry cargo and tankers worldwide.
Dry cargo
In dry cargo, the Company is one of the world’s largest operators of Handymax and Panamax bulkcarriers and has significant activities in the Handysize and Capesize segments. The latest initiative is the entry into the Post-Panamax segment. In total 186 dry cargo vessels.
Tankers
In tankers, the Company is active in the Aframax segment, which transports crude oil, and in the Handysize and MR product tanker segments, in total 28 tanker vessels.
D/S Norden recently put together a fine presentation that explains why they are so successful with an asset light model. They have a core fleet of modern vessels that they own, then lease other vessels long term, usually with options to purchase. When the option comes up they can then decide to either exercise the option and sell the vessel, exercise and keep, or decline.
Here is a link to the presentation that was held on January 22, 2008.
Dampskibsselskabet "NORDEN" A/S - Presentations
Trading Norden
Norden trades on the Copenhagen exchange. But you can also pick it up in the U.S. Here is how I trade Norden.
First get the quote in Copenhagen. I use Yahoo and the symbol DNORD.CO
DNORD.CO: Summary for D/S NORDEN - Yahoo! Finance
Then get the current value of the stock by going to yahoo currency. Put the listed price of DNORD into the yahoo currency converter and convert "D" (Danish Kroner) to "U" (US Dollars).
Then put a buy or sell limit order in under the US Symbol.
Bloomberg code
DNORD.DC
Reuters code
DNORD.CO
If the code doesn't work you can get the symbol from your broker by looking up the name. There are very very few shares traded in the US, but the shares track the Copenhagen price so it doesn't matter.
Norden will likely declare a dividend shortly - it should be about $7/share.
Navios Maritime is a similar company that is asset light and charters in lots of ships. Navios reports Wednesday. Norden reports March 10.
In summary, I believe Norden is a conservative way to play the dry bulk shipping. They know what they are doing and are the best at limiting risk while maximizing potential. Isn't that the name of the game?
