OceanFreight Inc fka OCNF

[strikehold]

Shippers Soar on Earnings Beats, Surging BDI

Back in September, China Ocean Shipping (Group) Co. researcher Kong Fanhua told Bloomberg the bulk shipping benchmark Baltic Dry Index could rally to 4,000 by the end of 2009. Calling what was then an 80% three-month run was a bold move, but so far Fanhua looks like a genius as the BDI has shot up by 65% since the September 29 report. With a month and a half remaining before 2010, the 4,000 mark is well within reach, and recent reports from industry players has given investors even more to cheer about.

Today, New York-based Genco Shipping & Trading (NYSE: GNK - News) is ahead by 8% after topping analysts' expectations in the third quarter. The company's profit dropped by -46% year-over-year, to $34 million or $1.09 a share. Genco said average daily rates were off by -22% compared to the same period last year, but Oppenheimer analyst Scott Burk told Reuters that actual dry bulk rates were nearly 20% above his forecast for Q3.

As a whole, the Dry Bulk Shipping Stocks Index is ahead by 3% today. However, it is still lagging the S&P 500 by -2.7% over the last month.

Over the last week, Safe Bulkers (NYSE: SB - News), Diana Shipping (NYSE: DSX - News), and Genco are all ahead by more than 15%. Diana topped third-quarter expectations yesterday, though it also saw its net get cut in half to $28.7 million or 36 cents a share.

Over the last month, OceanFreight (NASDAQ: OCNF - News), Excel Maritime Carriers (NYSE: EXM - News), and Star Bulk Carriers (NASDAQ: SBLK - News) are among laggards, down by more than -10%.

As of the most recent 13F filings with the SEC, the latest of which are due by the fifteenth, Kirby (NYSE: KEX - News), Navios Maritime Holdings (NYSE: NM - News), and DryShips (NASDAQ: DRYS - News) were among Pro favorites within the sector. It will be interesting to see where the Pros added or trimmed stakes during the third quarter.

As of this writing, the Dry Bulk Shipping Stocks Index is one of the 50 top-yielding tickerspy Indexes, with components paying an average 1.9% dividend.


http://biz.yahoo.com/indie/091111/2529_id.html?.v=1