smurphny

How to Invest in Shipping and Whether You Should

Greek shipper DSX has experienced an "ebbing tide lowers all ships" price decline during the recent market and commodities turmoil. It looks as if some factors would lead one to look at this as a buying opportunity. First, the plummeting BDI futures are not really a good indicator of a shipper's value because companies like DSX are in long-term contracts with predictable profits for all their ships. Second, China will have to start resume importing commodities very soon. Third, traditionally this is an up season for shipping demand. Fourth, technically the stock is due for a big rally. Fifth, "this too shall pass" regarding the recent panic. Most investors, as usual, will wait until it is too late to buy stocks with great fundamentals like this at these prices. We're probably closer to the bottom than the top.