Shipping stocks are on fire
On sector of interest to me is the waterbound shipping companies. I personally bought a significant amount of Genco shipping near its bottom of 42 during the pullback. This entire sector is on an amazing run as investors have started to realize that a slowdown in the US economy does not necessarily mean a slowdown in international economies.
GNK traded over 71 today making quite a nice profit for me.My gut instinct would be to not be a pig and take some profits, however with this strong of an uptrend you cannot fight the tape. I would consider buying into this sector. Also note that most of these stocks have fantastic dividend yeilds that are only going to get stronger.(DRYS: 15.23 0.00 0.00%, cap: 663.3M)(GNK: 19.15 0.00 0.00%, cap: 603.6M)(PRGN: 6.00 0.00 0.00%, cap: 162.8M)
April 23rd, 2008 at 12:33 pm
The dividends on this stocks are excellent.
April 23rd, 2008 at 12:36 pm
I posted the ticker for prgn because the stock was brought to my attention yesterday. I am going to do a bit of research on it and do a write up for the featured articles. The current yield is around 11% and I am pretty sure the div is sustainable…but as i said i need to do a bit of research first.
April 23rd, 2008 at 3:05 pm
I’d be very interested to read that. I will look them up myself too. Thanks
April 24th, 2008 at 4:39 pm
I took my GNK cost out when it hit $60. I Purchased it when it traded at $26. I just sold some more @ $70 and still retain a position. I used some of the proceeds to buy PRGN. I like the dividend and the upside. It traded around $27 as a high, so $17 seems like a good point to buy in. Of course it dipped today. I also bought OKN a while ago, a “blank check” company in the dry bulk arena that canceled it’s purchase of some ships and seems to be sliding down.
April 24th, 2008 at 6:40 pm
Picking it up at 26 was a steal. GNK definately has some of the strongest management in the bunch. People are finally starting to realize that emerging markets are not being effected by the US slowdown, so shipping stocks and the baltic dry index are recovering quite nicely. I do not own PRGN as of yet, however i do plan on doing some research this weekend. If i find the balance sheet is strong enough to sustain the 11% dividend i am going to sink quite a bit in it. OKN on the other hand i do not know. I would be weary of of the ship purchases. A lot of the ship builders for the bulk of the new vessles coming online over the next two years are having serious problems with the price of steel going through the roof. A lot of the contracts do not have an escalator for the rise in steel prices.
April 25th, 2008 at 8:59 pm
Here’s a good reference site for the dry bulk market (as well as others). You may already be aware of it: http://shipping.capitallink.com/
April 28th, 2008 at 12:53 pm
Thats a nice resource thanks for that.
April 28th, 2008 at 2:57 pm
I bought some more PRGN just under $17.00 today. that 10% dividend looks good.
April 28th, 2008 at 4:54 pm
Yeah i still havent had a chance to research as i had a busy weekend but plan on it asap. If that div is sustainable no reason not to load up.