Two Ways to Play: Deutsche Bank Upgrades Dry Bulk Shipping
Strengthen your portfolio in good times and bad.
Deutsche Bank upgraded select dry bulk shipping stocks this morning. In a research note this morning, the firm upped its target on Genco Shipping (GNK) to $31 from $24 and Eagle Bulk Shipping (EGLE) to Hold with a $4.50 price target.
While Deutsche Bank remains cautious on the sector, it believes near-term fundamentals suggest higher day rates in the fourth quarter.
Vessel dislocation from seasonal coal and grain trades added to positives for the sector as well as strength in imports into China. Capesize rates are up 45% since November 1, but the firm notes that dry bulk shipping stocks are only up 23% due to disbelief of a sustainable recovery. Deutsche believes day rate increases could continue through the first quarter of 2010 or beyond.
From the Bull Pen: Also consider Diana Shipping (DSX). The stock is trading near the top of its Bollinger Bands so one strategy could be to keep the position sizes small with a tight 2% sell stop.
From the Bear Cave: The theme here is that international stocks will outperform US stocks. Bears can look to Gamestop (GME). Those playing the downside can set a buy stop above $24.60.
A Quick Check around the World
Asian trading closed with the Nikkei 0.21%, India 1.09%, Hang Seng 1.73%, Shanghai 2.74%, and Taiwan 1.66%.
Across the pond, we see the FTSE 1.26%, CAC 1.19%, DAX 1.43%
As of 8:30 AM EST, S&P Futures are trading +9.25 to 1100.75. Nasdaq futures are up +10.25 to 1798.50.
A Look at Commodities
Over in commodities, crude oil is +0.94 to 77.29 while gold is +12.00 to 1128.70 this morning. Silver is +0.40 to 1778.00and copper +6.400 to 303.65.
The dollar Index is -0.3550 to 75.0700.
On the Radar
08:30 Retail Sales 0.9% cons.
08:30 Retail Sales ex-auto 0.4% cons.
08:30 Empire Manufacturing 29.0 cons.
10:00 Business Inventories -0.6% cons.
Click here for the full trading radar.
Welcome back, Minyans. Have a great day.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter