There is no real reason for a rally at this point but it looks like we have support in the mid 9s. Unless the BDI makes a big move up, well then all bets are off. Looks like a slow grind for the next few months with 11 being resistance. A nice 3-6 month base will be good for the long term holders and allow those who sold covered calls to benefit and add to positions on weakness. Nobody can time the market so to be in this stock you really have to be in for the next 2-3 yrs. I believe we will see a 70-100% gain including dividend payouts for those that hold for the next 3yrs. with $1.00-$1.50 annual payouts and earnings rising come 2015-2016 no reason its not a high teens low 20s stock. BAC is a good example. Trading 15 with no div, earns a little over a buck.
Well, for the 2nd time in the last month or so I'm almost back to breakeven in DSX after being in the red since July 2011, wondering whether to sell at a small loss to recover most of the dead money or just sit tight and wait for 2014-15 for it to hopefully rise back to some semblance of it's former glory. Don't need the cash, it's in my IRA, so I can be patient - just not sure it's ever going to be trading back in the 20's again, although out of all the shippers they're one of the most likely to rebound. Thoughts?
Being "back to breakeven" is a meaningless concept. You are invested with a certain number of shares right now at the current price and the question you have to ask is: do I think this is a better place for my cash to be than somewhere else?
It looks like the big hits to earnings will happen in late 2014 and early 2015 from expiring time charters. By that time, things could be looking up in the dry bulk sector. The two time charters for Capes way above the market could be balanced by better rates on some resets in the meantime.