oilsands

DryShips Looks Good, Even Without Its Dividends

Please note, I was talking about shipping, not Debra Fiakas self defense.

DryShips Looks Good, Even Without Its Dividends

I am glad to see som many folks ringing in with comments on this important subject.

Jim Hawthorne, basically I agree with your point and "don't throw out the baby with the bathwater" is one of my favorite sayings.
My comment was meant to modify your point, not contradict it. However, it is well to note the whole market is down, down, down like Davy Jones, so the influence of the BDI is subject to speculation. Also, remember that technical traders exagerate trends up or down. I wish I did have statistics on the fund managers, but that is not in my purview.

DryShips Looks Good, Even Without Its Dividends

Jim Hawthorne, your comment ignores the complexity of the shipping industry and the fact that many ships are on long term lease.
The support for your comment is that apparently there are quite a few fund managers too lazy to do adequate research who are unduly influenced by the BDI.

DryShips Looks Good, Even Without Its Dividends

Bartx, while I understand your frustration and anger, I can't help but think about the American bankers and brokers for 21st Century crime.
Biomedlives comment about other shippers suspending dividends is apt. Don't overlook the monkey see-monkey do syndrome. I look for more dividend cuts or suspensions, and in fact look upon these actions as responsible managgement.

Which Way Are Shipping Stocks Headed?

Tim, I really hope you will do a shipping blog. While the overall market impacts everything, as Rolex18k indicated, shipping will be one of the strong sectors, relatively speaking. I believe you are correct, many analysts lack the depth of understanding needed to cover this complex sector. So money is likely to be spread across the board in the sector.
DRYS suspended its dividend, following similar actions by DSX, SBLK and FRO. Expect more of the same for the next year of two.
Hope to see your comments on the current state of PRGN, TNK, EXM, SBLK, VLCCF.
Rolex18K, the real impact of the BDI is on the fund managers, whose perceptions of the market are easily swayed.

Digging into Shipping

Thanks for the excellent and thorough analysis. The companies you reviewed are predominantly long term charter, but it looks like the market is treating them as if they are mostly daily rate charters.

Boubou's comments are interesting. Which shippers do oil?

We have stock in DSX, OCNF, FRO and SFL. I watch many other shippers closely, esp DRYS , EGLE, and ONAV.

Some Stocks to Research for the Market Rebound

David White, sorry I forgot to say, thanks for a fine article. I like alternate energies, shipping, and agriculture. We also own some Canadian oil royalty stocks for income.

Some Stocks to Research for the Market Rebound

Re drilling: 1. foreign oil companies control where the very limited supply of skilled manpower and equipment gets used. 2. It takes many years for a land based well. From what I have read, offshore won't actually produce any oil for at least a decade, but that is optimistic. BP just spent 20 years and 6 Billion dollars to start one platform produing. We have no way so far to insure the oil comes to the USA even if it is drilled offshore. Some of our land based wells actually produce oil and gas for Canada. Where do you think all that oil in Alaska ends up? I am for sane drilling; we get royalties from two states. I am sorry to see the political frenzy over something that won't solve the problem when there are so many good options out there. If you take the money given to big oil in tax breaks and redirect it we could be energy independent from the middle east pronto. Mr. "head in the sands" (blue collar guy), do some research, please. The conversion from oil to other fuels will create jobs - jobs we need now. We are fortunate to have so much oil and gas and coal, but it is time to start using it prudently.

An Overview of the Global Shipping Industry

Hydrocarbons are moved in great volume by pipeline, esp. from Canada and Mexico to the US; however, the vast bulk of the transport is by ship. Maybe someone knows what the true per centage is.

An Overview of the Global Shipping Industry

Thanks for the breakout by focus. What about the other shipping stocks? You list factors for evaluating need, etc, but give no indication of where such data is located, or if it exists. I would imagine a lot of compiling is required. Does anyone do this?

You failed to mention DRYS venture into oil drillling platforms.