Optimism over a strong grain season has driven several dry bulk shipping stocks upwards dramatically over the past few months, but an article from Stifel Shipping Weekly points out that they are skeptical of a strong seasonal improvement in rates. While the market is focused on this story, however, Motley Fool industrials analyst Blake Bos tells investors in this video that the real story that dry bulk shipping investors should be watching is taking place in China. He tells investors about a report from Intermodal, saying that anti-pollution measures may be on the way in China. Blake then discusses why this could lead to higher steel prices and more imports, which could have a very positive impact on dry-shipping companies. He also warns of the risks involved with investing based on these kinds of rumors.
Could this be the shipping rate rebound investors have been waiting for?
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A home grown Kansan and largely self taught investor. I wouldn't classify myself by any particular investing style, just opportunistic. My dream investment would have a greater than 10% free cash flow return on enterprise value and be growing at above industry average rates. Some of my favorite industries to watch right now are: alternative energy, manufacturing, agriculture, infrastructure, and media content production companies. Follow me on any of the social media websites below for the most important 3D printing industry developments and other great stories.
