Penny Stock Soldiers (OTC tradeable tickers)/Momentum Plays

[Mouthhee]

Shipping News:

02:28 PM EDT, 09/25/2013 (MT Newswires) -- DryShips (DRYS) continues to defy gravity as it gains another 10% on Wednesday to reach yet another 52-week high of $3.99. The entire shipping sector is advancing, with notable gainers including FreeSeas Inc (FREE), Baltic Trading (BALT) and Paragon Shipping (PRGN).

Although DRYS stands out among other dry-bulk carriers, the industry is underpinned by the opening of the Northern Sea Route (NSR), which was previously blocked by ice. Formally known as the Northern Passage, the route runs along the Russian Arctic coast from Murmansk on the Barents Sea, along Siberia, to the Bering Strait and Far East. The entire route lies in Arctic waters and parts are free of ice for only two months per year.

The alternate route runs through the Suez Canal and is nearly twice the distance.

In addition, the decision by the FOMC to keep U.S. stimulus unchanged is bullish for the global economy, and ultimately supportive of shipping stocks as international commerce increases.

The metrics for DRYS are another reason for the meteoric rise in the stock. The price/book ratio of only 0.5 is nearly three times below the industry average while price/sales is less than half of others in this sector. This is compounded by higher rates currently being charged by the shipping industry which are as much as 4x what they were charging for the same period last year. This is evidenced by the advances in the Baltic Dry Index which measures the cost to haul dry freight through the world's oceans.

DRYS last traded at $3.90, with a new 52-week range of $1.46 to $3.99.

FREE traded nearly 4% higher at $0.518, with a 52-week range of $0.17 to $5.80.

BALT is up 6% to $5.31, with its 52-week range at $2.79 to $5.70

PRGN is gaining 8% at $6.19, with a 52-week range of $1.91 to $9.40.

Price: 3.97, Change: +0.36, Percent Change: +1000

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