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4-Star Stocks Poised to Pop: Diana Containerships

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, shipping company Diana Containerships (Nasdaq: DCIX  ) has earned a respected four-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

Founded Athens, Greece (2010)
Market Cap $174.0 million
Industry Marine
Trailing-12-Month Revenue $36.2 million
Management Chairman/CEO Simeon Palios
CFO Andreas Michalopoulos
Trailing-12-Month Return on Equity 3.6%
Cash/Debt $8.7 million / $91.8 million
Dividend Yield 13.4%
Competitors DryShips
Excel Maritime Carriers
Safe Bulkers

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 82 members who have rated Diana believe the stock will outperform the S&P 500 going forward.  

A couple of months ago, one of those Fools, justaboutperfect, nicely summed up the Diana bull case for our community:

This is a dividend and growth play. I have never invested in a shipping company, but their business plan shows that they are very focused in providing value to its investors. ... This is a long term play as long as the company can buy container ships at below market value and receive revenue from leasing the ships to support the high dividend.

Only down side is the inspection of ships before buying them and larger unexpected maintenance costs to bring them up to regulation.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (2) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 12, 2012, at 11:55 AM, Teacherman1 wrote:

    Brian

    I don't know that I would say it is "poised to pop", but it is a well managed company with a strong balance sheet, paying a very good dividend and still has share appreciation potential of 20% to 25%.

    It is a good intermediate term investment (12-18 months), and depending on whether or not they can find more vessels to purchase under their "model", they could go much higher and for much longer.

    Remember though, as good as they are, they are still a shipping company and subject to all the variables that affect that sector.

    I am long DCIX, have been for some time, and plan to continue to remain long, at least for the intermediate term.

    JMO and worth exactly what I am charging for it.

  • Report this Comment On July 13, 2012, at 5:16 PM, broadwaynewyork wrote:

    Teacherman1,

    What say you about TEU's secondary equity offering announcement today?

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Related Tickers

5/23/2013 4:00 PM
DCIX $5.76 Up +0.02 +0.35%
Diana Containershi… CAPS Rating: ****

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