Could Penny Stock Winland Ocean Shipping (WLOL) Breakout?

Penny Stock Winland Ocean Shipping Corp. (OTCBB: WLOL) should see its share price rise above $0.20 after announcing positive financial results on Friday.  The dry bulk shipper announced that revenues increased to $60.76 million and net income rose to $3.05 million for 2011. The OTC bulletin board listed company was able to be profitable during the economic recession.

2011 was a crap year for WLOL and the entire global shipping market the global economic turn-down forced its lowest point in the last 10 years. BDI, the indicator of the global dry bulk shipping market, decreased 44% from 2010 to 2011.

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Windland Ocean Shipping traded a mere 13,905 shares in the last trading session, less than half of the 3-month average daily volume. The company has a Market Capitalization of $39 Million with 195 Million Shares Outstanding.

WLOL Stock Price History:

2010: (High – Low)

Jan 4 – Mar 31: $2.70 – $1.50
Apr 1 – Jun 30: $2.25 – $1.65
Jul 1 – Sep 30: $1.70 – $1.25
Oct 1 – Dec 31: $2.90 – $1.60

Jan 3 – Mar 28: $2.50 – $1.30
Mar 29 – Mar 31 (after 1.5 : 1 split): $1.40 – $1.01
Apr 1 – Jun 30: $1.30 – $0.20
Jul 1 – Sep 30: $0.25 – $0.03
Oct 1 – Dec 30: $0.53 – $0.05

In 2010, before we decided to start AimHighProfits Penny Stock Newsletter, one of our stock picks was OceanFreight (Nasdaq: OCNF) which was teetering on Nasdaq Exchange delisting due to its inability to maintain a price above $1. Dryships (Nasdaq: DRYS) bought OCNF for a 3,400% profit in 7 months.

Founded in 1993, Winland Ocean Shipping’s core business international bulk cargo transportation, essentially a dry bulk shipper.  Based in China, theyhave established themselves to be a well-known shipping enterprise.  With an ocean shipping fleet of 11 vessels, WLOL has a self-owned carrying capacity of over 240,000 tons with the ability to provide a carrying capacity of about 1,000,000 tons monthly with shipping lines to all the major ports around the globe.

Recent Financial History:

BDI movement over the past few years indicates that the global shipping industry is currently at a historically low level. In 2008, the penny stock company reported revenue of $84.2 million with net income of $19.1 million. Revenue dropped to $50.2 million in 2009 with a net loss of $7.0 million.

2010 was slightly better with an increase in revenue to $59.2 million and net income of $3.1 million. Although the 10K filed 2011 results showed no increase to net income and a minimal increase in revenues, the stock split from March, 2011 will most likely hold back the share price from returning to $1.40 – $1.01 level.

Bottom Line: Shipping is a cyclical industry. WLOL disposed of the 3 older shipping vessels which decreased their shipping capacity by 73,000 Deadweight Tonnage (DWT). However, Winland Ocean Shipping purchased a 32,000 DWT vessel and built 2 57,000 DWT dry bulk vessels which increased their capacity by 146,000 DWT.

Can the share price of WLOL return to the $1 level? Perhaps but the recent positive financial results should have very little affect on the penny stock other than speculative buying based on takeover possibilities.


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