Shaky Bottoms : market risks

The market appears to continue to anticipate that at least some of these ocean carriers have a high probability of exiting the market. Several competitors within the sector are trading below book value, and also liquidated valuations, with fear of bankruptcy and/or selling off ships.
DryShips, Inc (DRYS)
Eagle Bulk Shipping, Inc. (EGLE)
Excel Maritime Carriers, Ltd. (EXM)
Genco Shipping & Trading Ltd. (GNK)
Navios Maritime Holdings Inc. (NM)
Overseas Shipholding Group Inc. (OSG)
Paragon Shipping Inc. (PRGN)
more

The beta of an asset within a portfolio is

\beta_a = \frac {\mathrm{Cov}(r_a,r_p)}{\mathrm{Var}(r_p)},~

where ra measures the rate of return of the asset, rp measures the rate of return of the portfolio, and cov(ra,rp) is the covariance between the rates of return. The portfolio of interest in the CAPM formulation is the market portfolio that contains all risky assets, and so the rp terms in the formula are replaced by rm, the rate of return of the market.

Golden Seas: Tor Viking II tows to Dutch Harbor

PANAMAX bulker Golden Seas successfully anchored in Broad Bay in Dutch Harbor at 12:52 p.m. after the tug Tor Viking II towed it more than 500 miles along the Aleutian Islands through seas of more than 20 feet at times. The Paragon Shipping Golden Seas is carrying more than 60 metric tons of rapeseed used to make canola oil,

The company, which transports mostly dry-bulk cargoes and containers, has seen declining results in recent quarters on weak demand and lower rates as a number of ships--ordered when commodity prices were booming--were launched. But shippers recently said demand from China and India, where most of the dry-bulk ships head, remains strong.
Paragon has commissioned seven more ships, which are expected to be completed in 2011 and 2012.
Michael Bodouroglou, the Chairman and CEO of Paragon Shipping Inc. (NYSE:PRGN ), earlier