Dry Bulk Shippers Floating Under Pros’ Radar (DSX, DRYS, BALT, GNK)
Despite being one of Wall Street’s cheapest sectors by P/E ratio, relatively few 13F filing asset managers have accrued big stakes in the stocks. The industry has been slow to recover form the recession, but with the BDI surging, and one analyst calling a dry bulk bottom back in July, these stocks should be interesting to watch in the second half.
At the end of the second quarter, only eight of the Dry Bulk Shipping Stocks Index’s 14 components were in the top-15 U.S.-listed equity holdings of at least one 13F-filing asset manager.
Diana Shipping (DSX) was the Pro favorite heading into the third quarter, with four Pros counting the stock among their top holdings. Meanwhile, DryShips (DRYS), Baltic Trading Limited (BALT), and Genco Shipping & Trading (GNK) all had three Pro holders by the same criteria.
A look at the Pros’ favorite stocks from the end of Q2 shows that 13F-filing asset managers largely favor large-cap stocks, where they can accumulate large positions with sufficient liquidity to exit when appropriate. With most Dry Bulk Shipping Stocks Index components weighing in at less that $1 billion, some of the stocks are too small to draw larger investments from the biggest hedge funds, mutual funds, and advisors.
Retail investors can track the Dry Bulk Shipping Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
More on this topic (What's this?)
Genco Shipping & Trading Announces Plan to Sign Time Charter (Benzinga, 9/13/10)
Trading the Baltic Dry Index With BALT (Benzinga, 9/22/10)
Steven Cohen's SAC Capital Jumps Aboard Genco Shipping (GNK) (market folly, 9/9/10)
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