Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

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Hidden Tigers (Season Premiere): Chocolate Ship Donuts

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

<ul><li>Good price momentum and slow asset growth relative to its sector</li><li>Chinese demand should continue to be strong due to its coal operation shutdowns and steel ramp-up leading to increased imports</li><li>Demand expansion should benefit PSL further as supply growth in dry-bulk shipping is expected to be low at only 1% p.a. in 2018 and 2019</li><li>PSL is a resilient company that saw great improvement in operating margin during 2017, which should pay off as the shipping supply-demand balance improves to PSL’s advantage</li><li>Risks: Change in regulatory environment, faster growth in supply could change the currently favourable supply-demand balance</li></ul><p>* Consensus Estimates</p>

Good price momentum and slow asset growth relative to its sectorChinese demand should continue to be strong due to its coal operation shutdowns and steel ramp-up leading to increased importsDemand expansion should benefit PSL further as supply growth in dry-bulk shipping is expected to be low at only 1% p.a. in 2018 and 2019PSL is a resilient company that saw great improvement in operating margin during 2017, which should pay off as the shipping supply-demand balance improves to PSL’s advantageRisks: Change in regulatory environment, faster growth in supply could change the currently favourable supply-demand balance* Consensus Estimates

PSL (PSL TB): Dry-Bulk Shipping Should See Continued Uptrend

Precious Shipping

PSL (PSL TB): Dry-Bulk Shipping Should See Continued Uptrend