Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, dry-bulk shipper Diana Shipping (NYSE: DSX ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Diana's business and see what CAPS investors are saying about the stock right now.
Diana facts
| Headquarters (Founded) |
Athens, Greece (1999) |
| Market Cap |
$913 million |
| Industry |
Shipping |
| Trailing-12-Month Revenue |
$282.8 million |
| Management |
Chairman/CEO Simeon Palios (since 2005)
CFO Andreas Michalopoulos (since 2006)
|
| Return on Equity (Average, Past 3 Years) |
16.6% |
| Cash/Debt |
$373.3 million / $356.7 million |
| Competitors |
DryShips (Nasdaq: DRYS )
Eagle Bulk Shipping (Nasdaq: EGLE )
Genco Shipping & Trading (NYSE: GNK )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 2,551 members who have rated Diana believe the stock will outperform the S&P 500 going forward. These bulls include dniggl and Slipposlappo.
Less than two months ago, dniggle wrote that Diana "is one of the best managed shipping companies." Our CAPS member concludes: "Shipping industry is at a historical low point and will rebound significantly in 2012. Buy low now and be rewarded later."
Currently, Diana even sports a comforting debt-to-equity of 32%. That's much lower than rivals DryShips (72%), Eagle Bulk (175%), and Genco (131%).
CAPS member Slipposlappo elaborates on the Diana bull case:
Heavy exposure to Panamax ships increases versatility of a well managed fleet under Mr. Simeon Palios, despite distressed conditions across the larger sector. This is the most responsible pick in the sector. ...
This is also a play on the belief (which I share) that the world is amid a coal supercycle, where coal will become an even more dominant energy source despite efforts toward green movements. Cheap, easy to extract, inert, easy to transport, abundant, with supporting infrastructure already in place, already the top energy source in the world, without headline risk like that of the Fukushima Daiichi nuclear plant, and utilized for both energy production and construction, I believe that we are entering a coal (both thermal and coking) renaissance. With that in mind, DSX essentially owns outright a fleet of Panamax and Suezmax oil tankers, without much of the risk associated.
What do you think about Diana, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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