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JimVanMeerten (62.38)

Star Bulk Carriers -- SBLK -- deserves a look

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August 18, 2010 – Comments (0) | RELATED TICKERS: SBLK

I'm adding Star Bulk Carriers (SBLK) to the Barchart Van Meerten Speculative portfolio. Once in awhile you find a small company that both the Wall Street brokerages and the public in general are both high on and this stock is it.

Star Bulk Carriers (SBLK) is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk's vessels transport major bulks, which include iron ore, coal and grain and minor bulks such as bauxite, fertilizers and steel products. Currently, Star Bulk has an operating fleet of nine dry bulk carriers, plus definitive agreement to acquire two further dry bulk carriers.

This stock really has momentum. Barchart has a buy signal on 11 of its 13 technical indicators for an 80% buy for both the short term and overall periods. The stock has managed to climb by 20.08% in the last month hitting 17 new highs along the way including 4 of the last 5 trading sessions. The stock has a Relative Strength Index of 73.12% and is rising. It recently traded at 2.93 well above its 50 day moving average of 2.61.

The general public as measured on Motley Fool has really noticed this little stock and has voted 686 to 21 that the stock will beat the market. The more experienced All Stars are also in agreement 268 to 6.

Wall Street brokerage firms normally don't follow a stock this small but they have distributed 3 buy recommendations to their clients and forecast a 100% increase in earnings per share for next year.

Star Bulk Carriers (SBLK) seems to be the little carrier that can. You should consider:

1 - The stock has a Wall Street following with buy recommendations published based on fantastic earnings projections

2 - The general public has discovered this stock and is overwhelmingly approving of its chances to beat the market

3 -  The stock has recent and consistent upward price momentum and appears to be a buy at least for the short term

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: No positions in the stock mentioned at the time of publication

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