Wednesday, January 6, 2010

Economy Recovery? Export recovery? then you need Shipping companies. I.e. DAC

If the economy comes back, Shipping should have some tailwind too in this market... no?

In the shipping industry, one I'd suggest is: DANAOS Corp.

Why?
Technically:
1/ refusing to descend below the 50DMA (around 4.5US$). It tried several times to rally, but was refused to do it, due to the economy & political uncertainty.
2/ Volume on the upside always higher.. See its attempt in September 2009.

Fundamentaly:
1/ Making money
2/ Market Cap well below its enterprise value, with a book value per share of 6+.
3/ I like the insiders ratio (80% ), and a low Institutionals ratio at 5% (which avoids to have too much manipulation "on the downside" for the stocks...).

General sentiment:
ALL depends the DRY BALTIC INDEX... & this all depends about the Economy recovery & Market sentiment...

I'd suggest to build up some position at these prices: 4.7, 4,6 & 4,5...

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