Can anyone point to anything factual that would explain why every dry bulk stock (including NM) is getting shelled today, again? Rates at near record territory, charterers still happy to sign long term charters, bulker companies minting cash, yet down they go every day. Makes no obvious sense to me, so I thought I would ask.
Oh yeah, mindless bashers, idiots, the clueless: don't bother responding.
It's a salient question. Intuitively, one would think that bulkers with long-term contract protection should be more insulated from any fear-mongering based on market flutuations. This "oil up one day down the next on supply concerns" garbage is surely playing into someone's hands quite nicely. With the BDI not far from record territory and the ongoing demand for raw materials that must travel by ship, it is more than confounding to see this daily pounding. The bulkers should be just as attractive an investment as the railroads in that they have a captive market. Clearly something is skewed. Guaranteed contracts mean nothing, asset valuation means nothing, raw material demand means nothing, low P/E's mean nothing, those bulkers that pay a nice dividend means nothing to their share price. I certainly question where the market valuation is coming from? One would think that the DRYS, TBSI and EXM's of the world would be at greater risk than the conservative plays but they are all getting hammered too.
Yeah, you've brought up the right issue for sure...Is it time for everybody to give up for the time being and move into cash and bonds? Or is that playing into the same set of hands that is dictating this crazy market?
Oil way up near $140 barrel...it's getting hit today too. So, it's not the shipper's fault or any stock....it's the Bigs on the Street unloading shares, then buying from weak hands who run scared and sell low, then holding for a while during a following run up, then unloading and buying low again from weak hands and.........on and on.
Over and over, it never changes...the sellers and profiteers are the same usual suspects, just the weak hands change. Seems to be an unlimited supply of weak hands. What, 250 years and running it's been going on? Just wait it out is the secret; don't look for 5 years, then get drunk for a positive reason.