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 dry bulk shipper DryShips
So what: This is a conflicted tale of good news and bad:
- The crucial Baltic Dry Index, which tracks shipping costs, actually took a rest from weeks of continuous increases today
- Bloomberg contends that Chinese shippers might be able to negotiate lower rates at this point, putting another lid on that Baltic Dry figure.
- But none of that matters because Hurricane Irene didn't damage DryShips' oceangoing fleet nor its port assets, and on the whole, investors are pouring money back into this out-of-favor sector again.
Now what: Need I remind you that bulk shippers are volatile in general, and DryShips more than most? Over the last five years, DryShips shares have covered a price span from over $121 to below $2.20 per share and still sit close to the bottom end of that range, with dividends on indefinite hold and dwindling cash balances being propped up by rising debt. In fact, another reason why DryShips is moving faster than rivals Diana Shipping
Interested in more info on DryShips? Add it to your watchlist. We won't judge.
