SummaryI believe the shipping sector is ripe for investment right now. The main reason behind this is that the economy is beginning to come back online and additional goods are now becoming needed since we've been burning inventory levels all year and in addition the holidays are upon us. Furthermore, most sectors have been priced up fairly high since March, but the shipping stocks still remain rather low. Furthermore, this trend has been exacerbated by the recent dip in the overall market, so now you have companies that were cheap a month ago, and even cheaper now because of the sell off from the DOW hitting 10,000, right when shipping companies have had their biggest orders of the year - before the holidays. Another reason I'm really liking shipping right now is that a few of the companies like NMM and NM have already reported earnings and seen large jumps, so I think the industry did better than expected overall.
I like
PRGN because it has the lowest P/E ratio of the group, and solid margins, but the best part about this stock is that it's about to release its
earnings on Nov 10, which should push the stock up pretty quickly.
I like
DHT because the chart looks VERY nice with an extra spike in Sept, and a sell off back down, so there is reason to say it will go back up fairly easily. This was also ranked by Motley Fool as a 5-star stock that is about to pop.
It's near a 52-week low. I think this may be my top pick.
TNK - Has already seen the jump, we're just a little late here, but I like this company, good numbers. High Dividend which is why I put it on here.
DAC - Also good numbers. I like how it was at 6 in mid Sept, now at 4.15. I think it could fall a little further though. Definitely, buy it at 3.70 if it gets that low.
As far as the other charts I've included, just a few ideas.
S - Sprint has been a good company and has a good network, nations only 4G network, good solid coverage, and its a company that will be around for the next 100 years with mobile tech becoming increasingly important. However, with overall mobile prices falling and users already signed up in mobile for the most part, it's tough to see where the additional revenue growth coming from. I've included it because it's fallen so far, and like I said its a very backbone type of company.
AEG - This one is also because of the chart. They sell life insurance and recently started selling in Brazil. I've been watching this for a while and they continue to grow, but have just had a bit of a sell off.
FTO - This company was taking off a few years ago when they did their IPO. It was on my list of companies that outpaced Google's IPO. This is one I'd pick up long-term. They do crude oil refining and wholesale marketing of petroleum products.
