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Is the shipping sector returning to glory?

Recs

9

October 14, 2013 – Comments (8) | RELATED TICKERS: DSX

It’s been pretty dim for the shipping industry since 2009 and one sector that has lagged in the recovery epically shippers associated with the BDI. However, the recent rise in shipping rates has me scratching my head and wondering is this going to be a yoyo or something that will be trending higher. If the increase rates (hold or move higher) this could be great news going forward especially in 2014 when you’ll see the true results in quarterly earnings if the BDI continues its current path.

I personally haven’t been too crazy about investing in shippers as it’s too volatile for my liking. However, if this trend continues it could be hands down a money making opportunity and turn around stories for many pushing their stock prices higher.

That said; what’s your take on the shippers and what’s your favorite stock pick if you have any and why?

It’s been quite some time since I’ve blogged on the Fool, and many fools I followed have left for whatever reasons (some we know).  Therefore, I’m not sure if I’ll get any feedback out of this question or not. But Hey!! It’s worth a shot to see…

Fool on.

8 Comments – Post Your Own

#1) On October 14, 2013 at 4:03 PM, awallejr (83.91) wrote:

Probably still too much of an over supply.  It is a sector I have never had good luck in so I avoid it like airlines.

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#2) On October 14, 2013 at 5:01 PM, Tagit (57.73) wrote:

Typo

It’s been pretty dim for the shipping industry since 2009 and one sector that has lagged in the recovery (especially) shippers associated with the BDI. 

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#3) On October 14, 2013 at 5:05 PM, Tagit (57.73) wrote:

# 1 

I totally agree with you on airlines = avoid!!!   :)

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#4) On October 15, 2013 at 11:12 AM, ElCid16 (94.88) wrote:

http://caps.fool.com/Blogs/one-of-the-best-run-shipping/827949

I think DSX could work nicely over the next 6-24 months... 

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#5) On October 15, 2013 at 11:32 AM, Teacherman1 (58.21) wrote:

Hi Tagit

A quick response is DSX, NM and DCIX.

There are some others that could be good "swing trades", but with the markets being somewhat "skittish", I will not mention them for now.

DSX because it has an awesome balance sheet, a first class management team, and will likely at some point start paying a dividend again. They will be around for a long time.

NM because they pay a dividend and have one of the best CEO's in the industry, and are extremely creative. Even though they don't show on my CAPS picks, I do own them and am up over 100%.

DCIX for the intermediate term because of their dividend, which is still very good, and they have addressed the problem of the unprofitable charters they had with Maresk, and as the new vessels come on line, will be profitable. I also think that if they can find another good deal or two, DSX will be willing to fund them.

As always, this is JMO and worth exactly what I am charging for it.

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#6) On October 15, 2013 at 1:01 PM, Tagit (57.73) wrote:

# 4 & Teach out of all three that were mentioned my choice would have to lean toward DSX. As the ole saying goes, they seem to be in the right place and the right time.

I agree with EICid16 when he quoted: 

DSX has more cash than debt, which I'm not sure any other shipping company can claim. They have plenty more ammo for ship acquisitions.  Even after it's run past $10/share, it's still trading well below book value.  This is one of the best-run shipping companies.  If the shipping sector turnaround is finally here, I think that DSX management can take advantage of it.   

That said, I'm keep a watchful eye on DSX and could pull the trigger at some point...well see. 

On a side note: Teach, hope you and the family are doing well. I'm always glad to see your post and comments.  

In fact, it's nice to see people comment at all on here, what happened to the good ole days....  =)

Fool on.  

 

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#7) On October 16, 2013 at 8:46 PM, Tagit (57.73) wrote:

Heck, if you read it  rec or it, gees people =)

Let's get back to the glory day's of CAPS!!!!! 

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#8) On October 16, 2013 at 9:21 PM, awallejr (83.91) wrote:

;)

 http://caps.fool.com/Blogs/if-you-read-it-please-rec-it/814473

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