Cramer Sings Happy Melodies About Kirby (KEX)
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Price: $7.83 --0%
Rating Summary:
8 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
Rating Summary:
8 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
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Chip Johnson, CEO of Carrizo Oil and Gas (Nasdaq: CRZO) commented on Wednesday night's Mad Money he believes every barge on the gulf coast is shipping light oil to Louisiana from Texas.
CNBC’s Jim Cramer pointed out the only publicly-traded inland barge carrier in the U.S. is Kirby (NYSE: KEX). It is also the largest barge company in the U.S. with 829 barges and 249 toweling vessels. It is listed as the lowest cost operator due to costs of scale.
The company typically ships petrochemical products; this segment makes up 60 percent of its revenue. Due to the high demand for barges, KEX has been able to increase prices, eventually helping drive growth. Low natural gas prices are making U.S. produced petrochemical look more attractive than foreign competition.
Water way shipping has zero competition due to the Jones Act, which makes it illegal for foreign companies to operate within the industry in the U.S. KEX is also benefits from the domestic drilling boom as a result of it its nationwide engine business and generator business.
Shares of KEX are currently trading up 2.3 percent, or $1.33, to $59.23 Thursday morning.
CNBC’s Jim Cramer pointed out the only publicly-traded inland barge carrier in the U.S. is Kirby (NYSE: KEX). It is also the largest barge company in the U.S. with 829 barges and 249 toweling vessels. It is listed as the lowest cost operator due to costs of scale.
The company typically ships petrochemical products; this segment makes up 60 percent of its revenue. Due to the high demand for barges, KEX has been able to increase prices, eventually helping drive growth. Low natural gas prices are making U.S. produced petrochemical look more attractive than foreign competition.
Water way shipping has zero competition due to the Jones Act, which makes it illegal for foreign companies to operate within the industry in the U.S. KEX is also benefits from the domestic drilling boom as a result of it its nationwide engine business and generator business.
Shares of KEX are currently trading up 2.3 percent, or $1.33, to $59.23 Thursday morning.
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