Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of container ship operator Danaos
So what: At the time of publication, more than 315,000 of Danaos shares have already changed hands, versus its average volume of just 76,000 shares. I can't pinpoint any specific news driving today's sell-off, but when you couple the stock's massive 80% run-up over the past three months with its beta of 1.9, a double-digit drop on a "down" market-day shouldn't come as a huge surprise.
Now what: I wouldn't be so quick to buy into today's sell-off. While its young fleet and strong cash flows are certainly positives, Danaos still sports a rather sobering debt-to-equity of 764%. For investors looking for exposure to the container ship space, less-levered, less-fiery stocks such as Seaspan
Interested in more info on Danaos? Add it to your watchlist.
