4-Star Stocks Poised to Pop: Diana Shipping

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, dry bulk shipper Diana Shipping (NYSE: DSX) 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

Headquarters (Founded)

Athens, Greece (1999)

Market Cap

$1.07 billion

Industry

Shipping

Trailing-12-Month Revenue

$294.2 million

Management

Chairman/CEO Simeon Palios (since 2005)

CFO Andreas Michalopoulos (since 2006)

Return on Equity (Average, Past 3 Years)

23.1%

Cash/Debt

$217.7 million / $214 million

Competitors

Navios Maritime (NYSE: NM)

TBS International (Nasdaq: TBSI)

CAPS Members Bullish on DSX Also Bullish on

DryShips (Nasdaq: DRYS)

Vale (NYSE: VALE)

CAPS Members Bearish on DSX Also Bearish on

Genco Shipping & Trading (NYSE: GNK)

Excel Maritime (NYSE: EXM)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97.4% of the 2,240 members who have rated Diana believe the stock will outperform the S&P 500 going forward. These bulls include All-Star mrindependent, who is ranked in the top 2% of our community, and BetapegLLC.

Last month, mrindependent wrote that Diana is "the safest of the dry bulk shippers." Our CAPS All-Star continues: "Large amount of cash on hand is equal to total outstanding debt. The company is currently profitable, but is selling for just 1 times book value."

In a pitch from last week, BetapegLLC expands on how Diana runs a tight ship. Here's an excerpt:

[Diana] has had stellar growth over the last 5 years. ... They have taken on an increased debt load but this remains very manageable. ... Risks to [Diana] include oversupply of dry-bulk ships, global economic recession, and low shipping rates. ... Nevertheless, it is this analyst’s opinion [Diana] is a satisfactory cyclical company to invest in with expectations of the global economic recovery. The Company benefits greatly from international trade especially from the United States, European Union, Africa, Middle East, Russia, China, India, Japan, Australia, and Brazil. Investors in [Diana] enjoy well-diversified exposure to international markets.

What do you think about Diana Shipping, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score

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Related Tickers

11/23/2009 1:20 PM
DSX $16.92 Down -0.33 -1.91%
Diana Shipping, In… CAPS Rating: *****
EXM $7.32 Down -0.06 -0.81%
Excel Maritime Car… CAPS Rating: *****
GNK $25.27 Down -0.19 -0.75%
Genco Shipping & T… CAPS Rating: ****
NM $6.18 Up +0.16 +2.66%
Navios Maritime Ho… CAPS Rating: *****
DRYS $6.22 Down -0.07 -1.11%
DryShips, Inc. CAPS Rating: ***
TBSI $8.39 Down -0.14 -1.64%
TBS International… CAPS Rating: *****

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