BigOlDave

The DJIA's Dangerous Indexing Philosophy

I compare my portfolio with the S&P 500.

Maybe that's because, when I hear the media report "the S&P is up 1.09 points for the day, closing at 1046.50", it's easy for my aging mind to calculate that the market's moved only about a 10th of a percent.

So I'll assume that I've made a little money today.

Tuesday's Options Recap

EXM suspended it's dividend as customers have begun abrogating established charter rates. That kills needed cash flow for shippers like EXM (DRYS has already suspended it's dividend) For details, go to: www.excelmaritime.com/...

Sure this is a prudent decision, but these customers annoy the snot
out of me. They unilaterally void contracts! Who in the world does
this, except customers of shippers ...or perhaps only the dry bulk
shippers? Don't think for a second that if charters are doing this to
Excel, they doing it worldwide to all of the dry bulk carriers.


From a legal standpoint, this lets Excel et al re-charter their boats
to the highest bidder wherever and whenever there is stuff to be moved
internationally. That will mean that Excel can jump out or the
customers will have to pay up ... retroactively, plus whatever premium
Excel will have from an optional customer.


For 2009, Excel is dead in the water! Expect shares to sink back
toward $3.50, at which point, I'll be buying with both hands ...unless
the world does not want to do business with anybody.


Dave