Jim Cramer's Mad Money In-Depth Stock Picks, 10/17/07: Sailing Away with Genco

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday October 17. Click on a stock ticker for more analysis:

Genco Shipping & Trading (GNK), Diana Shipping (DSX), Paragon (PRGN), Ocean Freight (OCNF), General Maritime (GMT)

One of the reasons few people are covering the silent bull market of dry bulk shipping is many find the subject boring, said Cramer, adding there is nothing boring about making money. With the high demand for ships worldwide and for raw materials in China, many of these companies have risen close to 50% and have higher to go. In addition, dry bulk shipping companies offer high dividends at around 6-7%. GNK Chairman and GMT CEO, Peter Georgiopoulos appeared on the show and explained the current growth potential in China can create the best era for dry bulk shipping since the period following World War II when shipping was required to rebuild Japan and Europe. In addition, new ships are not expected to be built for years and demand should continue to increase.

Cramer discussed two kinds of dry bulk shipping stocks. OCNF and PRGN are more conservative investments, because they are not affected by the Baltic Exchange Dry Index and have steady rates. Of the two conservative companies, Cramer prefers Paragon. For investors looking for bigger upside potential and can handle risk, Cramer recommended DSX and GNK which use chartered fleets and are tied to the Baltic Exchange Dry Index. Cramer likes DSX, which is up 17% since July.

Related: In July, Sandeep Gill commented that valuations for dry bulk shipping companies were approaching "bubble" proportions.

Mad Money Guest Mark Penn, author of Microtrends: Under Armour (UA), Lululemon (LULU), Gamestop (GME)

Cramer praised Mark Penn for his guide to spotting counterintuitive trends, and said the book could provide him with material for at least 25 shows. Cramer and Penn discussed three potential trends: the increasing number of women in strength professions such as the armed forces and firefighting, a trend which may be behind the success of UA and LULU, the rising number of women who buy cars and the popularity of video games, which has been good for GME. Penn said one factor responsible for GME's strong performance is that video games are not just for kids anymore; the age of the average player has risen to 33.

Don't Forsake eBay (EBAY)

Although the stock has risen 10% after its earnings report, Cramer urges viewers to hold on to eBay, since Paypal use has increased 61% year-over-year, gross merchandise value for eBay is up 14% and the company has bought back 14.8 million shares. Cramer predicts the stock will reach $50.

Only eBay reports the company's 59% earnings growth and the growth of Skype's concurrent users to 10 million.

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Comments

[MitchWilliamson]

Only one comment for Miriam: GMT is the symbol for GATX Corp. The symbol for General Maritime is GMR.