Dry Bulk Stocks Sinking Fast

• By the tickerspy.com Staff
• On 10:41 am EDT, Friday September 25, 2009

Investors grab your life vests, more than half of the dry bulk sector is off by more than -10% this week.

A wave of downgrades from Stephens crashed over the dry bulk sector on Friday. The analyst bumped Diana Shipping (NYSE: DSX - News), Genco Shipping (NYSE: GNK - News), Paragon Shipping (NASDAQ: PRGN - News), and Star Bulk Carriers (NASDAQ: SBLK - News) each down from Overweight to Equalweight, citing excess supply. As if that weren't enough to weigh on the already struggling sector, durable-goods orders unexpectedly fell by -2.4%, and August new home sales were weaker than anticipated, stoking concerns about the economic recovery. Shares are falling across the board to end what was already a rough week for the sector.

As a whole, the Dry Bulk Shipping Stocks Index is off by -2% today. The Index is trailing the S&P 500 by -4% over the last month.

The sector's -9% one-week slide makes it one of the the worst performers for the period. Euroseas (NASDAQ: ESEA - News), Excel Maritime (NYSE: EXM - News), and OceanFreight (NADSAQ: OCNF) are all down by -11% or more.

DryShips (NASDAQ: DRYS - News) and Eagle Bulk Shipping (NASDAQ: EGLE - News) are among stocks holding onto monthly gains, though neither was immune to this week's sell-off.

Investors should keep a close eye on the Dry Bulk Shipping Stocks Index, as some economists consider the sector a leading indicator of economic strength.

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