May 28, 2023


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Adventure Returns - E24

Adventure Returns – E24

Martin Mølsæter has sold himself completely out of Golden Ocean after a strong jump this year in stocks. Analysts still believe there are more dollars waiting.

Martin Mølsæter manages the funds First Generator and First Global Focus. Among other things, he has great faith in commodity stocks.

Over the past year, shipping company Golden Ocean has made record amounts in shipping raw materials such as coal and iron ore, which in turn drove the stock price up.

This year, the company, of which John Frederiksen is the main owner, is up more than 80 percent on the Oslo Stock Exchange.

Among the investors who have been involved in the economic recovery is Martin Mulsatter, who runs the First Generator Fund. Here, Golden Ocean was one of the largest shareholding companies this year.

Now, however, it has turned a profit and is completely out of the company after “adventure returns,” according to a recent customer report.

“We chose to sell because the stock price has been very strong this year,” says E24’s director.

Molsatter says he saw China’s lockdown restrictions begin to fall back in April, leading to smaller bottlenecks like waiting lists and other things that contributed to the rates being increased.

The fund bought Golden Ocean’s stake last fall, says Mølsæter, who did not have the opportunity to comment on the size of the return on the position.

The CEO is optimistic

Golden Ocean, which in the first quarter of last year delivered what at the time was the company’s best start to the year ever, has delivered solid numbers over the past year.

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This year the dry goods market has seen significant volatility, with a sharp decline in January and more recently offsetting.

Andersen, President of Golden Ocean, also expressed optimism about the period ahead, due to the growth in demand and “very favorable supply dynamics for the fleet.”

Fleet growth is slowing significantly and new environmental regulations will reduce efficient fleet supply and create additional competitive advantages for Golden Ocean due to fleet scale, modernity and fuel efficiency, Andersen says in the statement.

Golden Ocean’s market capitalization is NOK 28.5 billion.

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Analysts believe in more byks

Last week, a shipping analyst at SEB raised Golden Ocean’s target price to NOK 180 per share, from NOK 120, and reiterated its buy recommendation.

Golden Ocean’s stock reached NOK 141 on Wednesday.

The brokerage expects an increase in sailing distances over the next two years as a result of the shift in trade due to the Ukraine war.

“Combined with the best supply side in recent history, and the prospects for increased volumes from Brazil and offsetting Chinese steel production, we believe rates in the dry bulk market will be high for at least three years,” the report states.