I still have a small stake in EXM and luckying I tripled my EXM position a few days ago at $1.42, worried that if I did not buy I may miss the bottoming completely. I am not holding as much EXM as I wished to, but today's rally is delightful.
So what's up with EXM and with dry bulk shipping in general? It's got to be a good time to buy but you never knew it beforehand.
Maybe China is finally massively buying overseas resource commodities like coal. That means two things for investors: Coal stocks and shipping stocks.
EXM's bv is is $20 meaning that under normal environment, this should be treated AT LEAST $20. But I'm just amazed by the ability of the FEAR created by the SHORTs. Given the EXM's cash flow and balance sheet, it's hard to imagine that it came to under 1.50. My Hat Off to SHORTs!
Hope that LONG's time comes back finally.
There might be some little pull back but if breaks $2, margin calls will be kicked in and will push higher.
The reality is that if EXM survives, it would still be a great investment if it ever returns to the $5 range within the next 2-3 years. Hoping for triple digits...well let me know when you find that unicorn.
EXM did make a triple digit share price before.
EXM made the high of $81.99 on Oct 23, 2007.
But remember that was in the US dollar on Oct 23, 2007. That was a more valuable dollar than today's dollar.
Gold was worth $756 on Oct. 23, 2007 and is now $1721. So using gold as a reliable constant measurement of valuable, one US dollar on Oct. 23, 2007 is worth $1721/756 = $2.2765 of today's US dollar.
So the high of EXM at $81.99 US dollar on Oct. 23, 2007 is worth $81.99 * 2.2765 = $186.65 in today's dollar.
That's right EXM was worth $186.65 of today's US dollar at one point. That's triple digits, it can return to triple digit share price again.
Big break out with hugh voulme can means the trend change that has been down ward since the June of 2009 after big break down. (Look LYG. On January 10, broke out MA(50) with huge volume. Many pessimistic people betrayed by several sucker rally didn't buy the jump, now regretting.)
Smart shorts are not covering without any reason.
News came out today:
Baltic Dry Index Rises for First Time in Eight Weeks in London