RSS 2.0Atom
To add an specific blogger’s feed, simply go to their blog and click on their individual RSS link.
Plummeting into the Ocean Depths.
Rating: 2.07 (15 votes)
Vote: 
InvestorPlace Blogs is powered by Marketocracy. Marketocracy has authorized Investor Place Blogs as an official registrar for voting through Marketocracy's Investment Research Rating service. Registered members of InvestorPlace Blogs are linked with a Marketocracy account to establish voting power based on their performance of trading and posting on stocks.
Ahoy Matey, May your mind and the ocean upon which you sail be calm and peaceful. My Crow's Nest portfolio of maritime shipping companies is falling faster than the dollar tied to an anchor. In 22 days it's NAV has dropped from $13.95 (Oct 29) to $9.92 today (Nov 20). Arrrrrrr. "Shiver me timbers" "Blow Me Down" What in the seven seas is going on? I keep checking the companies. Earnings are up. Fleets are getting bigger and younger. Dividends are increasing. New charters are at all time highs. There's more demand than supply. All of the company news is good news. Great companies, terrible stocks (this past month!). Why? I don't know, but I'll an educated guess. The average company in the Crow's Nest listed on the U.S. stock exchanges in 2005. They're foreign and new. This past year they've made astronomical gains. DryShips (DRYS), for example, this year went from a share price of 13 dollars to over 130 dollars at the end of October. That kind of movement attracts a lot of attention. Traders, speculators, and other scurvy sea-dogs jumped on board. Once the market started turning south, they abandoned ship. I don't blame them for taking profits, it's the way of the world. Meanwhile, investors in shipping companies can only watch and shake their heads. DryShips is on sale right now for $79.24, with a P/E of nine and a half, a net profit margin of 73.8%, and an income growth of 2,847%. Diana Shipping (DSX) has dropped from over $45 at the end of October to $28.83 today. It reported triple 3Q profits last week, a new cape-size ship delivered and chartered to BHP Billiton for 4 years, an increased dividend, etc., and is on sale with a P/E of 15.3, no debt, and paying a 7.69% dividend. It's similar throughout the portfolio. What will I do? Nothing, just watch and wait. I'll let the shake out continue for a while before I rebalance the portfolio. If I could get Marketocracy to give me another million bucks, I'd invest it in the same place. I believe the maritime sector is in good order and shipshape. The stock market, on the other hand, is wild & crazy. Good luck to everyone. Robert
| ||
Comments (1)
Robert or Crow,
Once again an excellent post. Always informative and enlighting. May be you can write about high dividends by shipping companies.
Do you still like DSX and GLNG. How safe are their dividends. I am thinking of buying for my retirement account.
By the way, have you thought about starting a mutual fund or ETF for shipping or transportation?
Gullapalli, Krishna
Posted by gullapalli | November 29, 2007 11:03 AM