Given the global economic slowdown, lower commodity prices, and cool-down in former red-hot grow markets such as China; the accompanying table presents statistics and an overview of a global transport short ETF strategy for passenger airlines, auto makers, maritime, and trucking companies.
While I am still bullish on the prospects for railroads as a long investment idea and a hedge to these short transport ETF ideas, they will also suffer to some degree depending on the length and depth of the s
Relative to its industry, DRYS is extremely undervalued. DRYS's projected PE is only 5.4x while its industry's projected PE is 10.1x...implying that this stock should be $140 (so a $100 projected stock price is conservative)...the PEG story is even more severe, with an implied earnings growth rate of 108%...DRYS has a PEG of 0.05 while the industry is trading at 0.85...for some reason this stock is not being given credit for the growth that analysts are predicting...(the implied, projected stock price using PEG is even higher, which just illustrates the point)...here is the analysis:
The above table (click on image for full-screen view) presents a Global Maritime BULLISHares Index of companies which must have market caps greater than $500 million US Dollars and derive the majority of their revenues from shipping activities. The 30 equally-weighted, active component stocks are rebalanced quarterly based on the highest ratings, which are calculated as follows: (a) trailing 52-week stock price performance + (b) dividend yield + (c) percentage of total revenues represented by each company + (d) percentage of total market cap represented by each company. Globa
Probably not the best time to enter, but picking a bottom is hard to do, however this stock is bound to rebound past current prices based solely on core valuation. The sector has historically traded at aroun 10-14x PE and currently DRYS is a steal at 4x PE, up coming earning will be great undoubtidly, the key point will be the forward guidance however. I think DRYs is a leader and best of breed in the sector and is constantly changing and innovating (ie the purchase of off shore drilling oil rigs).
DryShips, Inc. engages in the ownership and operation of drybulk carriers worldwide. The company’s fleet carries various drybulk commodities, including coal, iron ore, grains, bauxite, phosphate, fertilizers, and steel products. As of March 14, 2008, it owned and operated a fleet of 46 drybulk carriers comprising 5 Capesize, 31 Panamax, 2 Supramax, and 8 newbuilding drybulk vessels with a combined deadweight tonnage of approximately 4 million tons. The company was founded in 2004 and is headquartered in Athens, Greece.
As part of its fleet renewal and expansion program, DryShips In...
The stock has been an a free fall for the past 17 trading sessions after hitting its highest point sense its last rally late late year. Its near its lower limit bollinger band, so I would think the bleeding will stop but its no telling what this stock will do since it broke its resistance level around 89 and is continuing it precipitious fall.
Within the last two weeks, both TheStreet.Com and Motley Fool have come out with articles recommending the purchase of shipping stocks. The recent surge in the Baltic Dry Index is certainly an excellent reason. Since the low of this year, the BCI has surged from around $80,000 to $230,000+. The BPI has surged from around $40,000 to $80,000+. The BSI has surged from around $40,000 to $66,000+. The BCI has surpassed its 2007 high. The BPI and the BSI are nearing their 2007 highs. The shipping stocks are still significantly below their 2007 highs. The experts are predicting the Baltic Dry ind
Given the uncertainty of the domestic economy, one industry worth considering investing in is commercial shipping. Shipping is the primary means of international transportation of any essential raw material or finished good. Approximately 80% of the cargo and almost 100% of hydrocarbons moved today is by water. The global commercial shipping industry can be classified into the following categories:
When I first wrote about Dryships (DRYS), the largest publicly traded dry bulk shipping stock in the world, it was sitting at 65 back in February of this year. <!---->I wrote it was the most undervalued stock in the market. It had a PE of 3 or 4, 658% earnings growth, and an extraordinary ROE. The stock just sat there. I wrote article after articleaboutDRYS highlighting the rising Baltic Dry Index, DRYS’s exposure to the strong spot market, the increasing value of its fleet, its entry into ultra deep oil drilling. I delivered a challenge to the investment community to find a company
Sometimes the easiest plays are right in front of you. If you keep up with the leading stocks in the leading sectors and look for the several opportunities to play them during a run you can get in early as well as get in again and again because a strong stock in a strong sector on a strong run will make many quality moves to buy into. Thus we often will play the same stock over and over and over again as it makes its run, buying in early and then adding and taking gain all the way up.
DRYS is a stock that made us huge money in 2007, and after a solid base in 2008 it s
DryShips (DRYS) along withLDK Solar (LDK) are probably the 2 most "controversial" companies we've owned - well maybe along with Crocs (CROX). Of the 3, we only own DryShips (DRYS) as of yesterday, and earlier this week the company reported yet another stellar quarter.
Thereare a lot of moving parts, but essentially the company reported $4.13(vs analysts $4.05). This industry is essentially the companies thatmove grains, fertilizers, coal from one continent to another (thinkrailroads on the ocean). Contracts are either longer term in nature oron the "spot market" (what the current market wi...
Peter Way selects his buys by following the trading activity of block traders -- those making large, million dollar bets. Here's the latest from his Block Trader Oil & Gold Monitor.
"The volume stock market liquidity-providers are hedging their necessary position risks in ways that foretell declining oil stock prices. Their records on such outlooks in the past are pretty good, so pay attention.
"The million-dollar market-makers are not always right, and here they tend to be a bit early, but it's obvious the
Beam me up Scotti! Wouldn't it be nice to beam up a 100 million metric tons of coal, steel, wheat, copper or any other commodity from here to say China, or India, or Brazil? Well, technology is not there yet! The way this stuff is transported from producers to consumers overseas is mainly by huge ocean going vessels, marine tankers and they are busy these days carrying over huge amounts of every commodity to countries where demand is outstripping supply as every day goes by.
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Only a decade ago Chinese were riding bicycles and wearing grey uniforms, happy to have a bowl of rice o
Bears have hammered the dry bulk sector for last 6+ months, mainly for being:<!--more-->
- At its all time cyclical peak
- Soon to suffer from overcapacity on new ship builds
- Global economy entering into recession
- Bulk freight index decline showing lack of pricing power
- Overlevered
Despite a bit of back and fill action the last few days, it appears the market is putting in at least a short-term low. While the long-term direction of our markets could take on any number of different outcomes, the climactic low placed last week in wake of the Bear Stearns debacle should mark [...]
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