Shipping company 2020 Bulkers earned $154M in Q1 by selling its entire fleet, but the stock plunged 32% as the firm became a corporate shell with minimal cash and no operating business.
2020 Bulkers posted a staggering $154 million net profit for the first quarter. Yet the market treated the number as a death knell. Shares crashed 32 percent on the day of the announcement to 4.69 Norwegian kroner, hitting a new annual low. The contradiction is easily explained: the company has effectively dismantled itself.
The profit explosion — operating earnings of roughly $157 million — came almost entirely from the sale of the entire fleet. Five bulkers changed hands in March, and the last vessel was handed over to its new…