Why Scorpio Bulkers Shares Popped 10% Today

What: Shares of dry bulk shipper Scorpio Bulkers climbed as high as 10% today after its quarterly results topped Wall Street expectations.

So what: Scorpio shares have been walloped over the past year on serious funding concerns, but a better-than-expected Q2 -- adjusted loss of just $0.09 per share versus the consensus loss of $0.11 -- is reigniting some hope on Wall Street for a triumphant turnaround. More important, the company reported that its cash cushion currently stands at roughly $450 million, suggesting that it has enough liquidity to survive until the Dry Bulk Index eventually recovers.

Now what: I wouldn't let today's double-digit pop prevent me from looking into the stock. While it may take a few years for the overall dry bulk industry to fully rebound, the new optimism surrounding Scorpio's financial situation, coupled with its still-very-attractive fleet of modern vessels, make the stock a particularly tempting turnaround play. With the shares still off considerably from their 52-week high, Scorpio seemsnicely suited for enterprising value hounds looking to get into the space.

The article Why Scorpio Bulkers Shares Popped 10% Today originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.