Baltic Dry Index Up 11 Days in a Row: Should You Care? [View article]
Shipping rates are improving because users of commodities, primarily iron ore to China are realizing that low commodity prices plus reasonable shipping rates equals a very attractive landed cost. Low commodity prices are actually helping shipping costs at this time.
Baltic Dry Index Closes at a 7-Month High [View article]
The BDI average since China became a major trade partner is about 4,000. A 2,500 level in the BDI indicates a reasonable level of profitability for most of the bulk shipping companies. As the global economy recovers, led by predicting China GDP growth of 6% to 8% for this year, BDI trading between 2,500 and 4,000 will be fine for the shipping companies.
"and now has convinced itself the recession is over… despite the fact the White House’s chief economist does not expect positive job growth until 2010."
Historically job growth does not resume until well after a recession ends (6 to 12 months) so both parts of the selected text above can be correct. Employers will not add employees until their businesses are growing again. Employment lags recovery.
This article is well written and informative, but sounds like a short got burned over the last month.
Atlas Pipeline Partners: A Painful Lesson in MLP Investing [View article]
Very good analysis. I echo your thoughts on APL. In this market it is hard to tell if a company is really in trouble or just part of the general sell off. I was encouraged by the Q4 news.
Frontline Steers Well in Rough Waters [View article]
VLCCs now earning $40k per day. FRO has daily expenses of about $32k per day. Things will be tight for a few quarters. BDI for dry freight and tanker companies are really different animals and using one to justify the other show little understanding of the market.
Nordic American Tanker: Excellent Long Play for the Income Investor [View article]
P & E, Tough to buy all of the tankers in the world at $50 mil a pop. The $10k is from NAT. The stock started this century at $10.75 per share and has paid $35.30 in dividends during the 9+ years since. That is why I like the stock.
Ormat: Moving Full Steam Ahead with Geothermal Power Generation [View article]
I like the company but have always seen the stock as priced like a growth company which grows like a utility. The stock still has a PE of 30 (better than when it was 50) and growth in the mid teens at best.
Terra Nitrogen: Fertile Investment Ground? [View article]
As I have written about several times in the past. Terra Industries (TRA) is the GP for TNH and takes almost 50% of the net income (at current levels) right off the top. TRA also owns 75% of TNH's units thus collecting the lion's share of the distributable cash. If you think TNH is a good investment, TRA makes even more sense.
How Far Will Baltic Dry Index Rally? [View article]
Just a note, this article went up on my blog on 2/5. On Friday the Baltics indices closed at the following levels: BDI: 1,642, BCI: 2,999 and BPI: 1,251. All of the indices were up over 50% for the week.
DryShips Looks Good, Even Without Its Dividends [View article]
For those knocking the timeliness of reports here. In my case SA pulls may articles from the RSS feed of my blog. They are usually published here 1 to 3 days after they hit my site. If you want the most current news from a writer check their own site or get the feed.
Which Way Are Shipping Stocks Headed? [View article]
I am working on the blog. Please sign up for the RSS or email feed at shippingstocksblog.com. I want to get a couple of hundred subscribers before I launch.
How to Take Advantage of the Booming Real Estate Market. Yes, Booming [View article]
If you have the cash you can get great deals in the markets hardest hit by foreclosures. Leveraged investment real estate isn't working, but cash buyers can earn 10% per year rental incomes on the cash invested and wait for the markets to recover, even if it takes years.
Baltic Dry Index Up 11 Days in a Row: Should You Care? [View article]
Baltic Dry Index Closes at a 7-Month High [View article]
Look Who's Buying Natural Gas Now [View article]
Historically job growth does not resume until well after a recession ends (6 to 12 months) so both parts of the selected text above can be correct. Employers will not add employees until their businesses are growing again. Employment lags recovery.
This article is well written and informative, but sounds like a short got burned over the last month.
Lan Airlines Invests $70 Million to Go Green [View article]
Copper and Resources Lead to Portfolio Outperformance [View article]
Atlas Pipeline Partners: A Painful Lesson in MLP Investing [View article]
Frontline Steers Well in Rough Waters [View article]
Nordic American Tanker: Excellent Long Play for the Income Investor [View article]
Tough to buy all of the tankers in the world at $50 mil a pop. The $10k is from NAT. The stock started this century at $10.75 per share and has paid $35.30 in dividends during the 9+ years since. That is why I like the stock.
Ormat: Moving Full Steam Ahead with Geothermal Power Generation [View article]
California Real Estate Market Is Up [View article]
Terra Nitrogen: Fertile Investment Ground? [View article]
How Far Will Baltic Dry Index Rally? [View article]
DryShips Looks Good, Even Without Its Dividends [View article]
Which Way Are Shipping Stocks Headed? [View article]
How to Take Advantage of the Booming Real Estate Market. Yes, Booming [View article]