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Shipping stocks recover as the sector looks a little downtrodden to investors after a harsh 71%...

Shipping stocks recover as the sector looks a little downtrodden to investors after a harsh 71% cut on the price target for Frontline (FRO +15.2%) by FBR Capital rocked  firms yesterday. Gainers in the sector include: OSG +4.8%, DRYS +3%, PRGN +4.8%.
Comments (1)
  • Herr Hansa
    , contributor
    Comments (3079) | Send Message
     
    Granted that the turnaround will be slow, but the sell-off saw many of the market caps going below book value, or below revenues. The main banks involved in the shipping industry have not pulled out of the market. I expect some consolidation amongst tanker companies, though it will be a slow process. We will likely see a few more failures, though those companies with larger fleets in productive pools should do well moving forward. Analysts are all over the place on these companies, with some recommending lay-ups of tankers, and some saying that lay-ups would be a terrible idea with the seasonal uptick soon to come. Obviously analysts don't run companies like these, so I place more value in the reports of chartering companies, and comments from the major banks extending loans to shipping companies.
    30 Aug 2011, 01:42 PM Reply Like
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