Seeking Alpha

Follow My Alpha's  Instablog

Follow My Alpha
Send Message
  • Diana Shipping (DSX):5 Reasons to be Bullish 0 comments
    Oct 11, 2010 7:32 PM | about stocks: DSX

    1. Financing issues and construction delays have led to a slip new ship delivery. The estimated number is around 35-45%. Should this theme continue there could be a continued shortage of dry bulk ships.

    2. China imported record levels of iron ore in 2009. This is a strategic dry-bulk shipping commodity for Diana Shipping. The key take away is that this spike in importing has congested the country’s vital seaports, which in turn increases pricing levels.

    3. Diana shipping rents out ships on multi-year contracts for risk management purposes given the volatile industry and to better manage its operating cash flow.

    4. Diana’s low financial leverage allows the firm to better handle downturns in the shipping spot market like we have seen in the last few years.

    5. Diana Shipping management has been more conservative and at this point holds a much lower debt-to-capital ratio than its competitors giving it a strategic advantage.

    Buy List:

    Follow My Alpha


    We have no official buy or sell position on Diana Shipping (NYSE:DSX) but heavily encourage a positive discussion to see all points of view be they bullish, bearish, and or something else.
    Stocks: DSX
Back To Follow My Alpha's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.