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Diana Shipping Up 10%, Dry Shippers Signal Better Economy?

Jan. 07, 2014 12:15 PM ETPSHG, GOGL, TNP
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Steve Hach's Blog
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VALUATION WARNING: Our models find that overvaluation is at levels typically seen when market pullbacks occur. Overvalued stocks assigned a valuation now make up almost 85% of our universe and 52.46% of the stocks assigned a valuation are calculated to be overvalued by 20% or more. ALL sectors are calculated to be overvalued--15 of them by double digits.

Ship Has Come In

--Diana Container Ships Up 10% for Small Cap Newsletter

Diana Containerships Inc. (DCIX) owns and operates containerships. As at February 23, 2012, its fleet consisted of eight containerships, including three containerships delivered to the Company, in February 2012, with a combined carrying capacity of 32,693 twenty-foot equivalent units and a weighted average age of 14.2 years. As at December 31, 2011, the Company's fleet consisted of five containerships with a combined carrying capacity of 20,486 twenty-foot equivalent units and a weighted average age of 15 years. On February 6, 2012, the Company through its wholly owned subsidiaries, Rongerik Shipping Company Inc. and Utirik Shipping Company Inc., purchased from Reederei Santa Containerschiffe GmbH & Co. KG two Panamax container vessels, m/v Cap San Marco and m/v Cap San Raphael, respectively. On February 17, 2012, the Company through its wholly owned subsidiaries, purchased from APL (Bermuda) Ltd. two Panamax container vessels, the m/v APL Sardonyx and the m/v APL Spinel, respectively.

Subscribers to our Small Cap Stock Newsletterare enjoying a boom in performance so far this month thanks to the 10% return from Diana Containerships (DCIX). In addition, subscribers were also advised to purchase shares in Tsakos Energy (TNP) and Knightsbridge (VLCCF). Those Transportation Sector picks are also up 8-10%.

When we take a look at the Baltic Dry Index (BDIY), which tracks these sorts of companies, we find that it has made a huge gain over the past few months. In fact, the index is now at the highest levels we have seen since 2010. A jump in these sorts of shipping companies is often viewed as a harbinger for the overall global economy. This is another positive indicator for the recovery. Good news for bulk shippers, which carry the basic commodities that form the backbone of the global economy, is good news for investors.

ValuEngine continues its BUY recommendation on DIANA CONTAINER for 2014-01-06. Based on the information we have gathered and our resulting research, we feel that DIANA CONTAINER has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Earnings Growth Rate and Book Market Ratio.

As a bonus to our Daily Bulletin readers, we are offering a FREE DOWNLOAD of one of our Detailed Stock Valuation Reports--this report is normally $25.00

Read our Complete Detailed Valuation Report on Diana Container Ships HERE.

Below is today's data on DCIX:







ValuEngine Forecast
Target
Price*
Expected
Return
1-Month 5.06 23.38%
3-Month 5.82 41.92%
6-Month 5.38 31.14%
1-Year 6.82 66.33%
2-Year 1.79 -56.32%
3-Year 1.61 -60.64%















Valuation & Rankings
Valuation 6.99% overvalued Valuation Rank 75
1-M Forecast Return 23.38% 1-M Forecast Return Rank 100
12-M Return -35.53% Momentum Rank 14
Sharpe Ratio -0.90 Sharpe Ratio Rank 6
5-Y Avg Annual Return -44.69% 5-Y Avg Annual Rtn Rank 18
Volatility 49.72% Volatility Rank 51
Expected EPS Growth N/A EPS Growth Rank 100
Market Cap (billions) 0.13 Size Rank 40
Trailing P/E Ratio N/A Trailing P/E Rank 24
Forward P/E Ratio 102.50 Forward P/E Ratio Rank 3
PEG Ratio 1.02 PEG Ratio Rank 42
Price/Sales 2.48 Price/Sales Rank 39
Market/Book 0.70 Market/Book Rank 88
Beta 1.41 Beta Rank 35
Alpha -0.69 Alpha Rank 10
ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued 15.4%
Stocks Overvalued 84.6%
Stocks Undervalued by 20% 4.96%
Stocks Overvalued by 20% 52.46%

ValuEngine Sector Overview

Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
Multi-Sector Conglomerates -0.42% -1.42% -1.42% 35.97% overvalued 16.87% 20.19
Computer and Technology -0.18% -0.52% -0.52% 34.15% overvalued 35.89% 31.70
Consumer Discretionary -0.27% -0.29% -0.29% 33.95% overvalued 39.30% 30.27
Transportation -0.63% -1.33% -1.33% 31.65% overvalued 41.13% 22.63
Aerospace 0.16% 0.07% 0.07% 30.48% overvalued 49.65% 18.85
Medical -0.48% 0.53% 0.53% 30.43% overvalued 41.03% 29.59
Business Services -0.86% -1.19% -1.19% 28.91% overvalued 40.56% 26.47
Industrial Products -0.77% -0.70% -0.70% 28.29% overvalued 37.69% 23.76
Auto-Tires-Trucks -0.20% -1.05% -1.05% 28.06% overvalued 42.24% 19.94
Retail-Wholesale -0.94% -1.13% -1.13% 27.99% overvalued 37.18% 24.90
Consumer Staples -1.37% -1.65% -1.65% 23.96% overvalued 24.54% 22.80
Finance -0.30% -0.77% -0.77% 23.79% overvalued 14.86% 17.86
Construction -1.07% -1.16% -1.16% 18.57% overvalued 29.99% 25.32
Oils-Energy -0.08% -0.33% -0.33% 15.33% overvalued 14.15% 26.76
Utilities -0.32% -0.94% -0.94% 12.80% overvalued 11.28% 20.36
Basic Materials -0.45% 0.12% 0.12% 8.13% overvalued -24.58% 21.32

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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