Navios Maritime Holdings Inc. (NM)

[Jang-A-Lang]

No Reason to Abandon Dry Bulk Ships

By Jim Cramer
RealMoney.com Columnist
10/30/2007 6:18 PM EDT

Freakout on dry bulk ships! That's what happened today. The hot money saw the break in the rates and skedaddled.


Should you?

Do you believe that rates are done going up? Do you know about secret ships that are being built or contracts being broken? Or revised down? Do you know what's falling apart?

Nothing.

Nothing at all.

Maybe that shouldn't matter. Maybe all that mattered were the stocks, and they are now "bad."

I say that if you invest like that, or if you invest without "room" to buy more, sell them right now. You are out of your league and you will sell lower.

I urge you to look at the longer time frame and see what drove rates higher to begin with -- world trade and a ship shortage.

That's what matters. I like Diana Shipping (DSX - commentary - Cramer's Take - Rating) and I like Paragon (PRGN - commentary - Cramer's Take) and OceanFreight (OCNF - commentary - Cramer's Take), too.

We saw panic today in these stocks. There usually is an initial momentum to the second day that takes them down more. That's when, historically, it has been right to buy.

Now, over at stockpickr.com, there is the usual reviling of me for liking something that went down. It is tiresome. But I still answer there and here, and I remind people, endlessly, of NYSE Euronext (NYX - commentary - Cramer's Take - Rating) $68. And I wish them all well!