Whenever I’d speak with management at some of the big dry bulk shippers, they always referred to the upside move in Capesize rates, moving off a low of $7,000 per day, with a real sense of relief embedded in their tone. They were fortunate, almost to a higher being, that their collapse was staved off by the Chinese gods who demanded steel, no matter the expense.
Well, Capesize rates just fell another 6% this morning, down to $10,000 per day.
In short, Capesize rates are now off 77% over the past month!
Can you imagine operating in such a ridiculously volatile environment? These rates are now back to levels when people were worried about the solvency of the bulkers.
I’m a buyer of the bulkers under two conditions.
1. Rates snap back, sharply, by 50%.
2. Share prices drop by another 20-25%.
NOTE: Under these conditions, DSX benefits, since they’re not tied to day rates. They are 90% charter rates, whereas BALT is 100% spot.
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I would sell the shit out of these bulkers.
Anyone know a website that tracks the BDIY?
http://www.dryships.com/pages/report.asp
Thanks Fly! Three cheers fer the C’pn lads – not the least of which is fer advising us to board, and more importantly, to timely abandon ship (s) BEFORE the recent decline! Arrrr.
Amen to that. Traded my $balt shares for puts. Sad we didn’t go to $10 but still made money.
Any thoughts on GNRC here?
None
the only solid trending sector ( money in from a time now ) , speculation or not , is the hemp / biopharma startup sector.
Fly, if you speak to Merlin, please ask him for his sentiments on the recent market selloff
I just heard a pandora radio ad for a “House Flipping Seminar”… I shit you not. The top is in
I just heard a pandora radio ad for a “House Flipping Seminar”… I shit you not. The top is in
Goddamn right about FAZ. It’s not too often I’m right though.
🙁
Stalking YELP?
Fly, Thoughts on GOGO? Longs capitulating left/right.
One word -cash, nothing more
GOGO puts now in the money. let’s go 19!
you better cover those fast. otherwise your profits will be gone *poof*
it’s half way into the gap. i have to hold for the gap fill.
lol good luck
i surmise you won the wager on gogo matt ?
the lead has changed to many times. lol
when do you fancy the margin calls hit? today 3pm? Surely a few out there were levered too much into a 3 day sell off.
no buying anything for me, until the dust settles
Was so obvious a fake/artificial move. Thought it was setting up/setup to crash, but look at that, perfect bell