OsideRes

Cramer's Lightning Round - A 50% Move for Gannett? (7/16/09)

Cash prices for iron ore into China, the world’s biggest buyer, will trade at more than the benchmark Asian contract price for at least the next 12 months as demand from steelmakers rebounds, said Goldman Sachs JBWere Pty.

The broker raised its third-quarter forecast for ore for immediate delivery about 10 percent to $84 a metric ton, analysts Malcolm Southwood and Paul Gray said in a report yesterday. This is for 62 percent grade ore, including freight, which is trading about 13 percent above the contract price.

www.bloomberg.com/apps...

Harpex Shipping Index: Grim, But Not Hopeless

The Baltic Dry Index is trending up. Check this out at this URL:

www.dryships.com/pages...

BDI Falters; Stocks Vulnerable?

"... Indian Steel Demand May Rise 10%, Double Previous Estimate, Rastogi Says India’s steel demand may gain as much as 10 percent this fiscal year, almost double the pace previously estimated, as the government spends more on infrastructure, Steel Secretary Pramod Rastogi said. ..."

www.bloomberg.com/apps...

BDI Falters; Stocks Vulnerable?

Actually, you should by DRYS just one or two days before June option expires. The option players keep DRYS low until June call options expire. Once the June call options expire, DRYS should quickly move up in price.

BDI Falters; Stocks Vulnerable?

Buy DRYS before it's too late.

"... A gauge of six metals leapt 4.2 percent in London yesterday, the steepest climb since June 1, while crude oil for July delivery added 1.9 percent to $72.68 a barrel in New York, the highest settlement since Oct. 20. The Baltic Dry Index, a measure of shipping costs for commodities, gained for the first time in six days with a 0.9 percent advance..."

www.bloomberg.com/apps...

BDI Falters; Stocks Vulnerable?

"China's demand for iron ore, industrial components and other foreign goods has picked up as companies buy supplies for stimulus-financed projects. But global commodity prices are down from last year's highs, so imports have declined in financial terms even as they have increased in volume."

finance.yahoo.com/news...=

"Japan Steel Stocks Rise on Output Report
Japanese steelmaker shares rose after a newspaper reported mills are restarting idled capacity. "

www.bloomberg.com/apps...

BDI Falters; Stocks Vulnerable?

The market cap of DRYS is about $1B. I wonder why isn't a couple hedge funds use about $200 millions to squeeze the short sellers and make 50% gain in a couple weeks? Remember, DRYS just had a contract for $600M for three year. This biz is a high margin biz.