DSX up 7.3% today | TigerDroppings.com

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LSU0358
LSU Fan
Member since Jan 2005
5162 posts

DSX up 7.3% today


Looking very nice.






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Colt M4A1
LSU Fan
Member since Jan 2013
986 posts

re: DSX up 7.3% today


6.42 now





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LSU0358
LSU Fan
Member since Jan 2005
5162 posts

re: DSX up 7.3% today


Not getting too excited til the close, but I'd like to see a new daily closing high above 10.71.





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Cmlsu5618
McNeese State Fan
Destin, FL
Member since Sep 2010
2416 posts

re: DSX up 7.3% today


All shipping companies were up today. Probably a short term pop. I'd dig deeper, but I'm not going to do that for ya.





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LSU0358
LSU Fan
Member since Jan 2005
5162 posts

re: DSX up 7.3% today


I've done a ton of research for shippers in general and dry bulk shipping specifically. DSX is one of (if not the) best run shipping companies there is.

DSX is up ~50% on the year, so more than just a short term pop for them. Most shippers are in deep crap because of there debt load.

They ordered new ships in 2008-2009 when charter rates where 7-10 times what they are now. Shippers agree to a purchase price when they order the ship. The new ships coming out have made some companies go bankrupt.

In comes DSX. In September of 2012 they where sitting on approximately 450 million dollars in cash with very little debt. At the time that was roughly $5 of cash per a share, when the stock was $6.40. If you counted in the scrap price of the DSX fleet at the time, they literally had more worth than the value of there outstanding shares. Now DSX is buying ships for 30-40% of the cost they where selling for 2-3 years ago. They currently have the same amount of cash on hand as debt from buying the new ships.

All in all, a nice stock that I plan on holding for quite a while.






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Cmlsu5618
McNeese State Fan
Destin, FL
Member since Sep 2010
2416 posts

re: DSX up 7.3% today


Wasn't trying to downplay the company. Frankly, I have no idea about the company. I do keep an eye on DRYS (no current position), and noticed it popped along with the rest of dry bulk.





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LSU0358
LSU Fan
Member since Jan 2005
5162 posts

re: DSX up 7.3% today


quote:

Wasn't trying to downplay the company.


No problem. I agree shipping is probably still in the bottoming process (I base this off looking at BDI long term charts etc).

DRYS is the proverbial whipping boy in shipping. They currently have 345 million in cash on hand with 4.5 billion dollars in debt. When a stock is only $1.90 (this morning) a 12% pop isn't hard to come by.

-Morgan






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