Dear Savio, There are a few corners of the market that have been thriving amidst the global pandemic and expected to continue to prosper for the foreseeable future. First, the global pandemic helped ignite the surge in demand for shipping commodities and goods across the oceans. As a result, the rates for dry bulk shipping are now sitting at levels not seen since 2010. And these rates are not showing any signs of abating any time soon, especially as the global economy continues to reopen and demand remains high for commodities. According to Market Research Future, the dry bulk shipping market is expected to rise at a 5.1% compounded annual growth rate (CAGR) between 2020 and 2027. To me that spells opportunity, so we’re adding another dry bulk shipper and a containership operator to the Accelerated Profits Buy List today. And second, the American consumer is alive and well. MasterCard recently reported that consumer spending was up 11% in July, when you exclude gas stations and car dealerships. The reality is that Americans are still out spending, and that continues to bode well for the economic recovery. So, we’re also adding another consumer-related play to the Buy List today. Now, let’s take a closer look at our three new additions to the Buy List this week. Costamare, Inc. Our first addition was originally founded back in 1975 as the Costamare Shipping Company S.A. with a small fleet of drybulk vessels that were directly or indirectly owned by the Konstantakopoulos family. Today, with more than 45 years of experience, Costamare, Inc. (CMRE) is one of the leading owners and operators of containerships in the world. The company currently operates a fleet of 81 containerships and 37 dry bulk vessels. Its fleet includes a variety of sizes of containerships, such as Panamax, post-Panamax and feeder. Costamare mainly serves the liner industry, as several of the major international liner companies are customers, including Cosco, Evergreen, Hapag-Lloyd, Maersk, MSC and Yang Ming. Company management recently commented, “The container market rebound that began in the second half of last year has continued into the first half of this year, drawing strength from favorable supply and demand dynamics. Strong consumer demand, low inventory levels and supply chain constraints have contributed to record charter rates and longer charter durations.” Thanks to the strength of the containership market, Costamare achieved adjusted second-quarter earnings of $58.3 million, or $0.47 per share. The analyst community was expecting adjusted earnings of $0.43 per share, so Costamare posted a 9.3% earnings surprise. Given the better-than-expected second-quarter results, analysts have increased third-quarter earnings estimates by 16.7% in the past month alone. Third-quarter earnings are now forecast to surge 186.4% year-over-year to $0.63 per share, compared to $0.22 per share in the same quarter a year ago. CMRE is a good near-term buy below $15. Star Bulk Carriers Corporation Star Bulk Carriers Corporation (SBLK) is a shipping company that primarily transports dry bulk cargoes around the world. Its fleet is comprised of 128 ships that range from Supramax vessels to Newcastlemax vessels. StarBulk Carriers’ vessels have a total capacity of more than 14 million dead weight tons, and they haul major bulks like grain, iron ore and minerals, as well as minor bulks like bauxite, fertilizers and steel products. Company management recently commented, “Our outlook for the market remains positive due to the reopening of the global economy and consequent increased demand across all key dry bulk commodities. The record low orderbook coupled with upcoming environmental regulations that limit new vessel orders, also create favorable long-term dynamics for our industry, which our company is well positioned to enjoy.” During the second quarter, Star Bulk Carriers reported adjusted earnings of $1.27 per share and revenue of $311.41 million. That was up from an earnings per share loss of $0.19 and revenue of $146.13 million in the same quarter a year ago. Analysts were expecting adjusted earnings of $1.25 per share on $296.11 million in revenue, so SBLK posted a slight earnings and revenue surprise. Thanks to the record second-quarter earnings, Star Bulk Carriers also announced that it will pay a quarterly dividend of $0.70 per share on September 8. All shareholders of record on August 23 will receive the dividend. The stock has a 4.2% dividend yield. SBLK is a buy below $26. Shoe Carnival, Inc. As one of the biggest retailers of footwear in the U.S., Shoe Carnival, Inc. (SCVL) operates 378 stores in 35 states. Through its retail locations and online platform, Shoe Carnival offers a variety of brand-name and private label shoes and accessories for men, women and children. Top brands include adidas, Nike, Converse, Under Armour, Asics, Puma, New Balance and more! The company also boasts a loyalty program with more than 27 million members. During its second quarter in fiscal year 2021, Shoe Carnival achieved record earnings and sales results, as well as a 10% increase in loyalty program members. Second-quarter sales rose 10.5% year-over-year to $332.2 million, up from $300.8 million in the same quarter a year ago. Earnings surged 337.6% year-over-year to $44.2 million, or $1.54 per share, compared to $10.1 million, or $0.35 per share in the second quarter of 2020. The consensus estimate called for second-quarter earnings of $0.75 per share on $332.23 million in sales, so Shoe Carnival crushed earnings estimates by 105.3% and posted in-line sales. Looking forward to the third quarter, Shoe Carnival expects earnings per share between $1.10 and $1.15 and sales between $307 million and $315 million. And fiscal year 2021 earnings per share are anticipated to be between $4.35 and $4.50 and sales are expected to be between $1.21 billion and $1.23 billion. Both forecasts were above analysts’ estimates, and as a result, earnings estimates have been revised dramatically higher in the past week alone. That bodes well for another quarterly earnings surprise. Buy SCVL below $41. Sincerely, 
Louis Navellier
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