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4-Star Stocks Poised to Pop: Diana Shipping

Based on the aggregated intelligence of 180,000-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 $690.3 million
Industry Shipping
Trailing-12-Month Revenue $279 million
Management Chairman/CEO Simeon Palios (since 2005)
CFO Andreas Michalopoulos (since 2006)
Return on Equity (Average, Past 3 Years) 14.4%
Cash/Debt $375.6 million / $349.6 million
Competitors DryShips (Nasdaq: DRYS  )
Genco Shipping & Trading (NYSE: GNK  )
Navios Maritime (NYSE: NM  )

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

On CAPS, 98% of the 2,550 members who have rated Diana believe the stock will outperform the S&P 500 going forward. These bulls include baldphil and macheu02.

This past summer, baldphil tapped Diana as solid long-term opportunity:

Great balance sheet. Buying ships on the cheap. Will pick up market share no matter what, but it may be a few years till the value is reflected in the stock price.

In fact, Diana sports a rather comforting debt-to-equity ratio of 30%. That's much lower than competitors DryShips (108%), Genco (129%), and Navios (129%).

CAPS member macheu02 expands on the outperform argument:

Goods will need to be shipped even in a down economy. Diana has more cash on hand than long term debt, and will be able to weather the current economic storm better than its rivals that have a ton of debt. I would expect [Diana] to gain as the shock wears off, especially if they reestablish their dividend.

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!

Interested in another easy way to track Diana? Add it to your watchlist.

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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.


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Related Tickers

5/25/2012 4:00 PM
DSX $8.25 Up +0.27 +3.38%
Diana Shipping, In… CAPS Rating: *****
NM $3.48 Up +0.14 +4.19%
Navios Maritime Ho… CAPS Rating: *****
GNK $3.22 Up +0.25 +8.42%
Genco Shipping & T… CAPS Rating: ***
DRYS $2.29 Up +0.04 +1.78%
DryShips, Inc. CAPS Rating: ***

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