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Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
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  • Market Notes: Indications Of A Global Recovery? -- September 4 2 comments
    Sep 4, 2013 5:36 PM | about stocks: OQ, SBLK, ESEA, NM, BALT, DRYS, SEA

    Market Notes: Although today's rally appears that the bulls are back in the driver's seat, the fact that the VIX is still elevated (above 15 is bearish) means that investors are nervous. We'll need to see the VIX move back below 15 and the marketing leading Dow Transport Index (DTX) move back above 640 before we can even think to say the bulls are back from their vacation.

    Market Highlights: Indications of a global recovery?
    Today, shares in the country funds of Korea (NYSEARCA:EWY), China (FXI, GXC), and Australia (NYSEARCA:EWA) all broke resistance levels. The health of these countries are considered indications of global growth. Also, shares of marine shippers zoomed today, especially Genco (GNK, $3.33), Star Bulk Carriers (SBLK, $9.17), Euroseas (ESEA, $1.28), Navios Maritime (NM, $6.63), Baltic Trading (BALT, $4.77), and Dryships (DRYS, $2.49) all of which jumped 7%-10% on heavy volume. Combine these two facts with the blow-out domestic auto retail sales figures and you've got some serious indications that the global economy is firming up.

    Assuming that a war in the MIddle East won't derail this growth, how can one position oneself to cash in on it? Well, the obvious way is to begin taking positions in the countries mentioned above as well as cashing in on the expected growth in marine shipping, an industry group that has been suffering. You can begin your fundamental research with the above shipping firms, and since I haven't done it myself, the only thing I can offer you is a technical opinion. Out of the above group, the chart of Navios Maritime (NYSE:NM) is by far the best of the bunch, IMO. It's the least volatile and has been rallying steadily, doubling in price since January. One might think that it might be overvalued but its P/E is still only a measly 5. Income investors may like it for its 3.6% yield. No matter what, I do think there's a lot of value to be had in the shippers. If you can't decide on which one or ones to pick, look at the Shipping etf (SEA, $18.83). This is a more conservative play and it, too, pays a dividend currently yielding about 2.3%

    Themes: marine shipping, long ideas Stocks: OQ, SBLK, ESEA, NM, BALT, DRYS, SEA
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  • REIT
    , contributor
    Comments (262) | Send Message
     
    this is late (very late ) news most shipping stocks doubled or more ...noticed they been going up for almost 8 months now and I'm not following the market closely.

     

    but still a nice short article for many and I really like the photo speaks 1000 words
    19 Sep 2013, 09:32 PM Reply Like
  • Dr. Kris
    , contributor
    Comments (359) | Send Message
     
    Author’s reply » Thanks for your comment and yes, the shippers have been steadily gaining strength.
    19 Sep 2013, 10:40 PM Reply Like
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