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A. Stotz Investment Research

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Pan Ocean Placement - White Knight Starts to Exit

Jeil Holdings IPO (Part 1): Holding Co. For the Biggest Chicken Producer & Dry Bulk Shipper in Korea

Dry Bulk Shipping - Why It's Time for Dry Bulk Stocks to Take a Breather

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

<ul><li>Relatively strong analyst recommendation and earnings on an upcycle trend relative to its sector</li><li>Pan Ocean is well positioned for BDI hikes in 2018, with cost-competitive vessels and 50% of bulk sales coming from spot rate</li><li>The company could benefit from <a href="https://www.smartkarma.com/entities/24493" target="_blank" data-smartkarma-citation="entities:24493:1">Suzano Papel e Celulose SA (SUZB5 BZ)</a> acquisition of <a href="https://www.smartkarma.com/entities/24497" target="_blank" data-smartkarma-citation="entities:24497:1">Fibria Celulose SA (FIBR3 BZ)</a>, already a long-term client for 10 vessels, forming the largest cellulose company in the world</li><li>Trades at 18CE* 7.1% ROE/PB versus Asian Transportation at 6.1% and offers a solid balance sheet</li><li>Risks: Lower-than-expected demand caused by tax hikes</li></ul><p><em>* Consensus Estimates</em></p>

Relatively strong analyst recommendation and earnings on an upcycle trend relative to its sectorPan Ocean is well positioned for BDI hikes in 2018, with cost-competitive vessels and 50% of bulk sales coming from spot rateThe company could benefit from Suzano Papel e Celulose SA (SUZB5 BZ) acquisition of Fibria Celulose SA (FIBR3 BZ), already a long-term client for 10 vessels, forming the largest cellulose company in the worldTrades at 18CE* 7.1% ROE/PB versus Asian Transportation at 6.1% and offers a solid balance sheetRisks: Lower-than-expected demand caused by tax hikes* Consensus Estimates

Pan Ocean (028670 KP): Well Positioned for BDI Hikes