One of the best-run shipping companies is looking incredibly bullish
Yes, here is another blogger claiming that it's time to jump into DSX. Cool story, Hansel. Right? Well, whatever.
It looks like Diana Shipping (DSX) is just finishing the mother of all cup and handle patterns. It is one of the prettiest looking charts I think I've ever seen. There was strong weekly volume in early 2012 during the run up to the beginning of the cup formation. There was medium to light volume throughout the entire, year-long cup formation. Big volume spikes finished up the cup formation, and a near-perfect handle formation is occurring, correcting only in the top half of the cup pattern. This is the 7th week of the handle formation, and today's big volume paired with a weekly close near 11 could signal a breakout. (you know, all that Bill O'Neil "How to Make Money in Stocks" stuff)
If you look at shippers' charts across the board, it finally looks like the shipping bottom has come and gone. This could be the nascent stages of a long, long bull market in shippers.
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.
The next two weeks could be a big tell tale sign for DSX. I currently have DSX green-thumbed, but I don't have a RL position. It's tough not to jump in right now, though...