Rand Logistics, Inc. (NASDAQ:RLOG)

Rand Logistics, Inc. (NASDAQ:RLOG) Starting a Rebound?

Rand Logistics, Inc. (NASDAQ:RLOG)

Rand Logistics, Inc. (NASDAQ:RLOG), headquartered in Jersey City, New Jersey, offers bulk freight shipping services throughout the U.S. Great Lakes region. Through its subsidiaries, the Rand Logistics operates ten self-unloading bulk carriers, including eight River Class vessels and one River Class integrated tug/barge unit, and three conventional bulk carriers.

Rand Logistics, Inc. (NASDAQ:RLOG)

Rand Logistics Competitive Advantage

Rand Logistics, Inc. (NASDAQ:RLOG) has a competitive advantage that is rooted in U.S. and Canadian legislation. Due to the provisions of the Jones Act and the Canadian Marine Act, Rand Logistics is the only ship carrier able to offer significant domestic port-to-port services in both Canada and the U.S. on the Great Lakes. The Jones Act mandates that only ships that are built, crewed, and owned by U.S. citizens can operate between U.S. ports. The Canada Marine Act requires Canadian commissioned ships to operate between Canadian ports.

RLOG stock has not traded above $1 since mid-February, 2017. Technically, this puts the company in violation of NASDAQ Rule 5550(a)(2) which states that “(a) Continued Listing Requirements for Primary Equity Securities: (2) Minimum bid price of at least $1 per share.”

Year-to-date, RLOG shares have lost over 50% of their value. But in the last quarter, shares have rebounded and gained almost 45%. The stock’s 52-week low of $0.19 was established in July.

While RLOG stock has rebounded recently, some observers still believe there are issues with the finances that will be very challenging for the company to overcome. According to published accounts, Rand Logistics, Inc. (NASDAQ:RLOG) has a current ratio of 0.10. The current ratio measures whether or not a firm has enough resources to cover its debts over the next year. When a current ratio is below 1, then the company may have problems meeting its short-term obligations (current liabilities).

However, reports show that at least one person with a large (10+%) stake in the company has been purchasing shares since early August. The consensus, one-year price target for RLOG is $2.00.

Sales took a big hit for FY2017 when the company reported a figure of $115.5 million – well below the 2016 figure of $148.4 million. FY2017 was also the largest per share loss the company has posted since 2012. For FY2017 they reported a loss of (-$1.08) – more than treble the loss of 2016.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $RLOG and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Rand Logistics, Inc. (NASDAQ:RLOG)

Is Rand Logistics, Inc. (NASDAQ:RLOG) Undervalued?

Rand Logistics, Inc. (NASDAQ:RLOG)

Rand Logistics, Inc. (NASDAQ:RLOG) shares have bounced off their 52-week lows of $0.32 and are trading around $0.40 on very heavy volumes. The 30-day, daily average trading volume is listed at just over 131,000 but by 1:40 PM EST over 1.7 million shares of RLOG have traded hands. There is no recent news from the company that might offer a reason for the increased volumes.

New Jersey, NJ-based Rand Logistics, Inc. (NASDAQ:RLOG) operates a fleet of bulk freight ships that services the great lakes region. The fleet consists of ten self-unloading bulk carriers, including eight River Class vessels and one River Class integrated tug/barge unit, and three conventional bulk carriers. Rand Logistics’ vessels are operated under the U.S. Jones Act – which dictates that only ships that are built, crewed, and owned by U.S. citizens can operate between U.S. ports. Rand also operates under the Canada Marine Act that mandates Canadian commissioned ships to operate between Canadian ports.

The logic of the continued slide of Rand Logistics, Inc. (NASDAQ:RLOG) could be questioned. Rand is one of the largest bulk shipping companies operating on the Great Lakes and the premiere provider in the River Class sector and have over a 50% market share of the Great Lakes bulk freight shipping services in the River Class sector. Overall, more than 95% of their contracts are long-term and with quality counter-parties such as Cargill, ADM, and Arcelor Mittal. In 2015 shareholders experienced per share losses of (-$0.59) but that loss shrank to (-$0.31) in 2016. Sales have remained fairly steady but in 2016 they did record the second lowest sales figures in the last five years.

Given that nothing appears catastrophic the performance of Rand Logistics, Inc. (NASDAQ:RLOG) seems extreme. RLOG shares have dropped over 72% for the year and are down over 58% YTD. Given the volume size in today’s move higher, shares may be seen as undervalued by some.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $RLOG and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.