Mikelandia

Good Time to Buy a 'Little' Shipping

With companies like prgn and ocnf booked through 2009 it appears the dividend streams will be secure (fuel costs permitting). Considering the increase in market volatility due to elimination of the uptick rule and selloff in anticipation of the "summer doldrums" the arteries of the global economy are excellent inflation hedges as they ship inelastic demand items for infrastructure and energy. A ship is a ship, a u.s dollar is an i.o.u from the citizens of a country who are in a productivity free fall and coping with massive government incompetence for the last 8 years. Most assets yes even housing should adjust upwards to offset what will be a continued free fall of the u.s dollar now that the monopoly of education has been shattered by web 2.0.

That said. The shippers with massive yields to be sought as investors give up on growth to seek shelter from the summer storms should provide incredible upside with low fundamental risks and yields that provide healthy investor cashflows. America is for sale. To trade assets for greenbacks is like selling Manhattan for a bucket of beads and trinkets.