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).
I haven't had a chance to listen to the conference call yet, but from the earnings releaseA-Power (APWR) had a solid quarter although they missed the analysts estimates. Due to the lumpiness of their distributed energy business (sort of like an global engineering type of company) it is hard to look at one quarter versus the next but the key is they have a very back loaded year (3rd and 4th quarter are 75% of their yearly EPS this year) and they "mostly" executed on the 3rd quarter coming in at 28 cents versus 32 cents estimate. For a company with a 15, 20, 25 PE ratio I'd be concerned bu...
Last Valentine's Day we put together our annual list of heartbreakers - i.e. stocks that members thought would give investors the most heartbreak over the next year.
Within now just three months left to go, the heartbearkers are collectively down -45% (41 losers & 3 winners).
The biggest heartbreaks so far? Crocs (CROX), Istar Financial (SFI), Las Vegas Sands (LVS), Dryships (DRYS), & MGM Mirage (MGM) have lost more than -80% since February 14, 2008. Ouch!
Back in September 2007, I started periodically posting snapshots from the optionsXpress Trading Patterns feature and chose to highlight the highly speculative Chinese internet search firm, Baidu (BIDU), then trading at 299, as my guinea pig. Over the course of seven months, I twice updated what traders who traded BIDU were also trading at optionsXpress when BIDU was at 380 on 10/30/2007 and when it was at 350 on 4/22/2008.
I just captured the most recent Trading Patterns update, which shows traders who are trading BIDU (currently at 185) are still active in the most volatile names in agric
Monday: Economic Construction (-0.8%), ISM (42.0) Earnings Allegheny Energy (AYE), DryShips (DRYS), Goodyear (GT), Oshkosh (OSK), Anadarko (APC), Auto Data (ADP), Herbalife (HLF), MasterCard (MA), Mohawk (MHK), Open Text (OTEX), Otter Tail (OTTR), Rock Tenn (RKT), Pitney (PBI), Principal Fin (PFG), Viacom (VIA.B)
Tuesday: Economic Truck / Auto, Factory Orders (-1.5%) Earnings Archer D (ADM), Emerson (EMR), FirstEnergy (FE), Graftech (GTI), Jacobs (JEC), Marvel (MVL), Rowan (RDC), RTI (RTI), Vornado (VNO), West Pharma (WST), Blue Nile (NILE), Kendle (KNDL), Ultra Petrol (UPL), Weight Watchers (WT...
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