Exactly two months ago, I blogged about the ocean shipping industry.
A recent comment in the blog made reference to DryShips Inc (NASDAQ:DRYS), perhaps wondering if the Marine Freight (GICS:20303010) and Ports (GICS:20305030) industries are so deeply over-sold they represent a Value play in the market today. Maybe the comment came because of the incredible leap (followed by collapse) in the shares of DryShips?
http://www.4-traders.com/DRYSHIPS-INC-30546720/
As I hear it, the ocean liner (container) shipping industry continues to self-destruct. Moreover, President-elect Trump is creating possibly a tsunami wave for shippers if he continues on about applying duties and tariffs on foreign-made goods being purchased by Americans. Experts believe it will be 2018 at the earliest before the industry sorts itself and moves back into meaningful profit again. By then, the major ills of the global economy may also be sorted, the major liner companies will be amalgamated or sunk, and all the mega-ships presently under construction will have been delivered. Ergo, the table is being set.
So, with difficulties noted, the earliest I would venture into even the most carefully selected stocks in these industries would be 4Q2017.
Let’s see how that opinion turned out.
On Dec. 18, at the time I wrote that blog, DryShips Inc (NASDAQ:DRYS) closed at $39.28.
On Friday Feb. 17, DRYS closed at $4.47. That is a loss of -88.6% over two months.
Enough said.
Enjoy the weekend. Meanwhile I have about 8000 (not 4000) charts on my plate. You see, on the weekend I look at multiple time frames — at least for as long as my eyes can take it. 🙂
All the best,
/Bill
