BDI was below 800 not too long ago and now its a double or so off the bottom. New charters are profitable vs where they were 6 months ago. Not sure where its going but I plan on nibbling back in on weakness and sell covered calls again.
Starting buying the 11's 2 yrs ago bought all the way into the 6's Sold covered calls for 2 yrs so the trade worked out fine. Had too many eggs in this basket. Time to diversify and look at other ideas
impossible to guess. Hoping for a nice 11-12 base and my covered calls will expire worthless and I can sell more again. At 12-13 the run was little too much too early. Year end target is about 12. It would be nice to see the div return in the beginning of 2014 which is hear before we know it. Earnings should be revised positively and it would not surprise me if Dianna breaks even or positive next year with a return to profits in 2015 and beyond. by then we will have 40 or more ships. Should not be too hard for DSX to make 1.50 to 2.00 by 2016. If they payout 50% of the profits we could easily have a 6-10% yield with growing profits. Selling covered calls has been a good strategy so far and I will continue
would make be happy but who knows. Sold some Dec 12 and 13 calls so I could loose some but you cant be too greedy and sometimes profit taking happens. This feels like the beginning stages of the rebound that could last for a couple of years. Some more weak players may fold but DSX will continue to add ships and it will pay off. I would think if mgmt. believes we have a real turn they bring the dividend back as early as 1st Q 2014. The earning estimates will hopefully be way too low and as analyst have to revise back to profits the stock will continue to increase. If Dianna gives a 1.00 div and makes 1.50 or more this can easily be a high teens to 20.00 stock. 1.00 div on a 15.00 stock is a 6.7% yield. if they pay 1.25 div then its about 6% yield if its 20. with close to 400 mill in the bank and earnings becoming positive they need to return the cash to us.