Posted By RichC on February 13, 2012
Every once in a while those interviewed on widely watched financial television channels have an opportunity to mention individual stocks … not a big deal when the companies are larger. Unfortunately mentioning a couple lessor known companies can move the prices.
Today CNBC’s Bill Griffeth on his Closing Bell segment interviewed an analyst from Oppenheimer who suggested that shippers might be undervalued. Carter Worth compared the trend to the Dow and suggested trading a couple of the laggards. Bill pressed him for a couple of names and Mr. Worth complied (can you tell by the charts when he mentioned these two stocks?)
… one way to then, you know, sort of get involved here is to try to play transports by those that have lagged by shippers. Are there shippers that you like or should you buy the group? There are groups that I like but the Baltic Index is at an all time low. So the cost of leasing a boat is going down to record lows the stocks themselves are actually starting to come up off the bottom and there are two that looked good among others, but DryShips (DRYS) is one, and if you look at the chart, it shows that a well established down trend, 7-2, and then we are breaking above the downturn, an important development, stock leading the the way, while shipping rates stay down.Another one, Genco (GNK), 25-5 and here too, you see the down trend and moving above the down trend, there’s wisdom in price. the prices of these shippers and many others are starting to move up while the shipping rates are at lows. what you are acknowledging is that there’s strength in the key sector, you are trying to find the bargains. again, everything else is robust …