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Diana Shipping Inc. (DSX)

NYSE - Nasdaq Real Time Price. Currency in USD
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3.5900-0.0300 (-0.83%)
As of 02:00PM EST. Market open.
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  • j
    $KAIKY conversation
    Attention dry bulk shipping investors: Are you concerned with your shares continuing to trade down amid the slumping dry bulk rates and Baltic Dry Index? Perhaps what you need is a superior, much more diversified shipping investment to go along with your holdings. May I point you to the following relatively lesser known (in the U.S.) very deep value Japanese diversified shippers:

    Kawasaki Kisen Kaisha (U.S. ticker: KAIKY)
    Nippon Yusen Kabushiki Kaisha (U.S. ticker: NPNYY)
    Mitsui O.S.K. Lines (U.S. ticker: MSLOY)

    These are very established, century-old global shipping companies, each with large fleets diversified across dry bulk, tanker, containership, LNG carrier, LPG, and car carrier ships. In the case on NPNYY (the largest of the three), the diversification extends even further into air freight, land freight and real estate.

    Together, the three companies operate their containership fleets (currently by far the most profitable sector of their businesses) as ONE (literally). That's right, their fully owned (by the three of them) joint containership business is called Ocean Network Express (ONE) and is the world's 6th largest container carrier and has been raking in massive profits, to say the very least.

    If you are wondering about valuation, well, these three world-class shipping companies are absurdly undervalued. Each has a P/E of around 2. That's right: 2. Not only that, each has a forward annual dividend yield ranging from 8% to 14%. Half of the annual dividend for each is coming soon (ex-dividend date of March 30, 2022 for all three).

    With the recent swoon in the Baltic Dry Index, just like most of your favorite dry bulk shippers, you can pick up shares in these very high quality shipping companies at a big discount right now relative to last month. But guess what: these three shippers are still raking in massive profits from their large container fleets unlike dry bulk pure plays that are struggling with today's low dry bulk rates. While I am bullish on the BDI going forward (I have recently initiated a long position in BDRY), as far as investing in the shippers themselves, I prefer these undervalued, diversified, high quality Japanese shipping companies.

    My largest position of the three is in KAIKY. KAIKY is the smallest of the three by market cap and, not coincidentally, enjoys proportionately the largest exposure of the three to the lucrative containership part of their businesses. I have a smaller position in NPNYY and no current position in MSLOY (just because the overlapping nature of these three stocks arguably makes investing in all three unnecessary).

    If you are interested in investing in these, make sure you do the exchange rate and share ratio math first and understand that the trading of these tickers is very, very thin in the U.S. (this is proof of how little known and therefore undervalued these quality shippers are). Make sure you don't pay too much for your shares (try limit orders in the middle of the spread). But because of the thin trading, it is almost impossible to buy shares without paying a slight premium (1% to 3%) to the Tokyo shares of each company. Key ratios to know: 2 KAIKY shares = 1 Tokyo share of Kawasaki Kisen Kaisha; 5 NPNYY shares = 1 Tokyo share of Nippon Yusen Kabushiki Kaisha; 2 MSLOY shares = 1 Tokyo share of Mitsui O.S.K. Lines.

    Good luck to all shipping investors.

  • N
    Third Grader Insights

    OP heading to zero. DSX to follow albeit slowly over time.

    How can the exchanges permit these spinoffs that don't last 6 months before becoming essentially worthless time and time again? Sell DSX and go buy something else that won't have trying to understand this insanity over and over again. I finally did but I wish I did it much sooner.
  • N
    I'm out of DSX and OP. Been holding DSX for over 10 years. Got in long ago even before dividends were great. I used the proceeds to buy SBLK to stay in this sector as I have come to know it over the years and I want something cyclical in my portfolio. Holding onto DSX for this long was a mistake. I should have gotten out once management started making one foolish business move after another that no one understood. Some have speculated these moves were designed to line their pockets using various income making strategies but to me it is a lot of effort that greatly reduced the value of their own shares of which they own a significant amount. That would seem penny-wise pound foolish. Instead, I tend to think they just made repeatedly poor even contrarian business decisions and now they are paying for it in the value of their shares. DSX shares will likely go up marginally moving forward but it will not compare to other shippers that got their act together during the downturn albeit at great cost to shareholders. To think that DSX was actually in a much stronger position than most of the other shippers at the start of the downturn and yet somehow managed to squander that advantage to be in a much weaker position today. I'm tired of trying to understand it. I'm out.
  • J
    OceanPal will and up the same as dcix.Nothing.Anyone on this board remember the Diana container ship business.How well did that go?This is not a good investment
  • N
    DSX should be based in Turkey not Greece.
  • C
    Are we supposed to get OceanPal Inc. shares today?
  • N
    DSX has totally mismanaged itself to be stuck in a very poor position during the recovery of dry bulk of the last year and half. Container shipping foray sad. Share buybacks sad. Selling the ships sad. The spinoff sad. Buying a new build for $60M sad. Continual slow, steady march to oblivion that analyst and investors do not comprehend sad.
  • N
    Unfortunately, DSX is literally missing the boats on the dry bulk recovery. Selling the ships, buying back the shares, breaking up the company into worthless pieces: it's all coming together now in a beautiful master plan to ride the dry bulk recovery wave??? They did not invest for or positioned for the recovery. This company went from having great potential to a complete disaster thanks to one foolish, ill advised and contrarian decision after another that no one understands. This should not be acceptable to shareholders. It's too late to rebuild the fleet and whatever income they make will not be significant to shareholders with the current fleet. It's not a growth story; it's not an income story. I don't see a future (for outside shareholders) other than maybe selling or merging to/with a larger player.
  • I
    Anyone who was holding 100 share of DSX for example got 10 shares of OP

    Now you have 100 share of DSX and 10 share of OP, right?
  • A
    the march upward will continue through spring of 22
  • d
    Judging by the shift in TCE during the recent quarter and coming up soon, DSX will be earning in the area of $250,000 more per day.
  • m
    mark turner
    Next stop 10.
  • B
    Do not understand why it dropped so much today. Earning are good and will go up with lease renewals.
  • M
    Yay, finally a dividend. Not as good as long ago but it's a start
  • N
    1) Container shipping foray costing well in excess of $100M to finally shut down
    2) Buying back shares when making substantial losses
    3) Selling 20+% of shipping fleet right before rate rise dramatically
    4) Spinoff of 3 old ships in spot rate market that will amount to nothing for DSX or the spinoff

    One major misstep after another since 2007-2008 that never seems to end. This company has made some really bad moves (at least for investors) over the years. The worse thing for this company is its own management. I see no future for this company.
  • J
    JJ Cypress
    Yahoo keeps deleting my post.
    Let me be more polite.
    With earnings out this is disgraceful
  • V
    Sold this bear in September for $5.45 three months later and the price is less.
  • J
    JOHN A
    anyone get there .10 dividend today ??
  • J
    I don't own shares in Diana. I own 18,500 shares of EURN (tanker) and DHT (tanker 13,000 shares). What is with this company. Trying to understand it. Where does the value go?