This is going to cause a lot of damage to companies that have ordered ships because of all the demand. Some of them in India are Shipping Corp and GE Shipping - and a number of smaller players too. The credit freeze is impacting global shipping - as without credit there's no shipping of goods.
Current prices are where they were five years ago. If the BDI gets any lower, it's going to be a sorry affair.
3 comments:
Do you think its a good time to make a contrarian bet on shipping stocks ?
After all, the credit freeze is not going to stay forever and goods and raw materials will need to be shipped.
V: Chances are that the recession will cause a lot lesser demand and the supply coming in to the market will keep prices down. So I don't think there's a contrarian play there....maybe in 2010...
check out GE shipping it had reached a 10% dividend yield levels when the index touched 7600...was a terrific buy then...no wonder it has rebounded back so strongly...
www.niftydaily.com
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