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Teacherman1 (57.79)

Told you to get them while they are cold-Still not to late

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November 11, 2009 – Comments (2) | RELATED TICKERS: EXMCQ.DL , EGLE , DSX

About a month ago I posted a blog suggesting that Dry Bulk shipping stocks were at or near their bottoms and they might be worth a look.

EGLE - 10-05 up 21.71%

DSX - 10-05 up 25.63%

Exm - 10-05 up 6.46%, but up 11.88% today.

The only one of my pure Dry Bulk stocks that is not up is SBLK. It is down 11.50%, but actually I am up since I bought it for less than my Pick Price.

Of course this is offset by NM - 3-26, which is up by 133.80%.

I have some other shippers that are not pure Dry Bulk, but they are also up.

DAC - up 11.11%

ESEA - up 6.15%

Actually I am up more than that in real life, because I bought more on dips when the market "corrected".

This is not to say "Naa Naa, I told you so, but to remind you it is not too late.

They all have and will continue to go up and down in the intermediate term, but for the longer term, they will be real winners.

Do your own DD, but if you can ignore the gyrations of the market in the intermediate term, there is big money to be made in the longer term.

JMO and worth exactly what I am charging for it. 

2 Comments – Post Your Own

#1) On November 12, 2009 at 10:13 AM, jamespeer (25.80) wrote:

I've been bullish on shipping & transportation for months now, watch out for GMR which is lagging behind the others.  Fair value around the $11 mark...

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#2) On November 12, 2009 at 11:30 AM, Teacherman1 (57.79) wrote:

James

GMR is a tanker, not Dry Bulk, but I expect you know that.

They are still paying a decent dividend (about 7%), even though it is down from what it was, and it is one they can continue to support.

My Tanker investments are more for dividends than super growth, but since I take a longer term (2-3 years) view for my investments, I also expect they will show appreciable growth over time. Especially if their dividend goes back to previous levels.

They just issued $300M in notes, which will increase their debt level, but will also position them to continue modernizing their fleet, which they have been doing over the past 3 to 4 years.

They will have semi-annual interest payments and they are at a fairly high level, but they don't mature until 2017.

I am comfortable with where they are and what they are doing, and don't need to see big gains in the intermediate term.

If they have significant dips on market "corrections", then I will buy more and lower my carring cost as well as boost my dividend rate.

I am into TNK for the same reason.

I understand that neither of these is the "Top of the Pack", but that is why they are priced where they are.

Good luck on your investments.

Have a nice day. 

 

 

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