Dow is struggling with 8,000 as IF it is a RESISTANCE???
GE post ER guidance was taken as too OPTIMISTIC.....so it is taken DOWN 6%...
Gold UP $36....
Oil Down $1++
Canadian $ is UP against US$..two day's in a row..as Canadian Central Bank Governor is very OPTIMISTIC about a 2ND half recovery in Canada irrespective of US economy....CAD UP 83 tick..good for my financial health as i am short US$......
In my portfolio :
Bought GERN which got approval for human Stem cell research from FDA today...Barak Obama is all for Stem Cell research to give cure for many disease.GERN got approval for Spinal cord research which actor Christopher Reeve died from......it is his dream to get cure for such a crippling injury....my cost $7.88
HGU UP $1.76
GERN UP $2.76...I am UP only 8 cents..volume is 30 million as of 12.09 ..normal volume is 905,000 for whole day...
@ 12.10 following is green in my watch list :
XLF,STP,JASO,WFR,KGC,SLV,C,TKC,ICE,
NDAQ,WYNN,AUY,GG,ABX,VLO,SPWRA,
SNE,GS,GOOG,FWLT,AGU,LDK,CSIQ.
BLOG does NOT give buy or sell.
Saleem
2 comments:
some thoughts on DRYS:Drys showed today a subtle foreshadowing of just how bad things are for every drybulker heavily leveraged on debt. DRYS stated they will now be reporting a LOSS of $380.6 million and $431.4 million, or between $6.89 and $7.81 per share. They are canceling the order of nine capesize vessels and DISPOSING of three capesize vessels. This is just the very beginning of what you're going to see going on with many of the drybulk shippers, EXCEPT of course, Diana whose young vessels are all paid for.
When Diana suspended its dividend after the 3rd quarter, it was to raise substantial cash to capitalize on situations just like this. Without debt covenants and loan obligations to worry about, Diana is now in the process of building a powerful cash war chest to use these opportunities to begin buying vessels on the cheap to empower itself for the ensuing upswing in the drybulk market over the coming years.
In the meantime, as Diana builds its powerful cash position they are wisely setting conservative charters for a short period of time, averaging only a year. With Diana's superior reputation the charterers are wise to realize the average of pervious vs. current charter rates which will be honored, just as the lower charter rates will continue to be honored as rates climb in the future and new higher charter rates are set. So over the long run, you see, the average for the charterers balances out and from this point forward over the next three years, Diana will continue to have steady and BUILDING cash flow.
Meanwhile, 4th quarter earnings will be strong as the majority of Diana's fleet is still set on strong long term charters. Additionally, rather than letting their ships coming off charters just sit idle, they are setting modest charters for these ships over the next 12 to 14 months to bring continued positive cash flow as they build their cash war chest on the majority of other much stronger long term charters. The mix of several lower rate charters combined with higher rate charters, and ensuing higher rate charters moving forward will create a solid balance as Diana continues to build the company.
Soon the world will see why Diana will be the number one dry bulker on the market and investors will flock to DSX more so than any other dry bulker. No, not today or tomorrow, but we'll see in one and two years from now. The question is how much higher investors will have to pay by then to get the high dividends when they're reinstated. That will doubly make DSX the biggest winner of all
Hi Madmax,
Thanks for detailed thesis on DRYS/DSX.....very useful interpretation.
Saleem
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