Any thoughts on investing $ 10 ,000 into one of these shipping companies for a Long Term investment or whichever one is the most likely to go up 20 % first ? Thanks in advance for your honest opinions and NO bashers PLEASE ! I am just asking as I have NO knowledge of shipping companies and I would like to add one to my portfolio to be more diversified.
20% may only take a week, depending on whether some TV talking head decides to mouth off.
Dry bulk companies in general are high beta names.
But since you have NO knowledge of the sector, and you've ruled out listening to "bashers", then you may as well throw darts at a dart board.
You can probably get some information here about differences between DSX and DRYS, and even this is difficult because of enormous level of noise permeating this board. Anyway, the ultimate decision what to buy will rest with you and it won’t be easy because market always presents various scenarios of future development; in some scenarios DSX is better and in some, God forbid, DRYS can be better.
Regarding specific differences, DSX has better management and stronger balance sheet (it is a commonplace to use word “much” in this respect, i.e. much better management and much stronger balance sheet). It is probably the only drybulk stock still having zero net debt (debt minus cash), and it is one of few in this sector still having positive cash flow. However, if you don’t believe in near-term sector recovery then buying it now can be far off achieving 20% gain requested in your message.
DRYS is better diversified, owning both bulkers and tankers and, more important, stake in ORIG, deep-sea driller. Both bulkers and tankers lose money left and right, but oil service is supposed, theoretically at least, to make money. However, if you like oil service then you could also consider buying an oil service stock, and if you believe specifically in extremely bright future for ORIG then you could just buy ORIG.
As you see it is not too clear. Good luck with your investments.
Thank You VERY much. You brought up a lot of key points for both companies in just 3 small paragraphs. I appreciate the time You spent putting together the message to me and I learned more from You than I did in 3 hours of reading about the 2 stocks myself. Thanks Again and Good Luck to You trading / investing
I have been reading your posts for quite a while, not only here in DSX, but also in RBY, you are one of the posters with clear, rational mind.
Now, my situation is similar to Bruisersampson, I am comparing DSX and ESEA, I do not have any bias. I just believe now is the bottom ( talking about long cycle ). I think it is the right time to get in the sector, so, I am trying to pick a stock from the sector to hold for long term, expecting it be a five, six...or even ten bagger.
I would like to ask: what would be your top three picks in the sector?
Thank you so much.