Stocks that Float: TANKERS & DRY BULK SHIPPERS

[xanadu90]

Dry Bulk Shippers: The Rebound Begins
(Edit: open the link to see the tables, very usefull)

posted on: February 14, 2008 | about stocks: DRYS / DSX / EGLE / EXM / GNK / NM / OCNF / PRGN / QMAR / TBSI
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This was one of my big picture items for 2008 listed in the January 2 Post, in fact, it was the first first bullet point under the first theme. Click here to check out all those big picture thoughts.

* More Consolidation Coming. This was one of my beginning of the year themes– insert link and in the wake of the EXM/QMAR merger industry executives see more mergers on the horizon which appears to be dragging up the valuations of the smaller players.

* Rates Have Rebounded Sharply. We thought this would happen as we approached the Chinese New Year on Feb 8 and it did, with a pronounced V-shape. Click here to see the latest move in shipper rates.

Earnings For The Big Bulkers Begin This Week. (DRYS) and (QMAR) on Thursday, (DSX) on Friday.

http://seekingalpha.com/article/64666-dry-bulk-shippers-the-rebound-begins?source=yahoo
click to enlarge
dry-bulk-multiple-021208.jpg

Key Points of the above table: These data are compared to 1/10/08 which is when I started to warm back up to the group after its year end beheading.

1) After a rather heterogeneous rebound in the group, current size leader and spot market levered leader (DRYS) remains the cheapest game in town on current year earnings.

2) Earnings estimates have slowed to a crawl and in some cases reversed a bit.