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Thursday, October 16, 2008

Shipping Index deep dives
From Big Picture: The "Ugly" Baltic Dry Index:

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.

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Deepak Shenoy 10/16/2008 10:22:00 PM
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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.
Blogger Mr. V, at Oct 16, 2008 11:50:00 PM  
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...
Blogger Deepak Shenoy, at Oct 17, 2008 1:00:00 AM  
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
Blogger ASHLAY, at Nov 2, 2008 2:11:00 PM  

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