Dry Bulk-Get them while they're Cold
To some this may seem like a really foolish move on my part, but luckily for them, I am not investing their money.
I have been watching DSX, EXM and EGLE for quite some time. Back in early August, I felt they were about 50% over valued and have been waiting for them to drop.
My trigger point for DSX was about $10.00. For EXM it was about $6.00, and for EGLE about $4.00.
DSX just would not drop and I don't expect it to do so significantly. EXM and EGLE are now within my "trigger range".
I will be picking them in my CAPS on Monday, and in real life as well.
I know, some of them have a lot of debt, and the BDI is not particularly favorable. They are not paying a dividend at this time, so there is no reward for holding, but I am a longer term investor (2-3 years) and since I can not pick the exact top or bottom, I am willing to watch the (sometimes wild) gyrations and fluctuations for the intermediate term to achieve what I believe will be a very good longer term return.
Each of them has taken some steps to improve their staying power during the downturn and I will be commenting on these in more detail in my CAPS picks.
I do not pretend to be an expert in the area of shipping, but I do know how to analyze financial statements and assess a companys potential.
I am not recommending them to anyone else. Do what you personally feel comfortable with, whether that be to ignore them, run screaming from my "insane suggestions", watch them for awhile, or take a small position then adjust over time. Do your own DD. (Hey I think someone else said that before)
As always, this is JMO and worth exactly what I am charging for it.