Recently I wrote that it was a great time to invest in the shippers. Stocks I had been watching closely - and seriously considering buying - like GNK, have been devastated. It is true that the Baltic Dry Index is plunging, but apparently it's a temporary thing, so now might be the time to climb aboard.
The index, which measures the cost of hauling freight across the oceans, is down 12% since the beginning of this week alone, and as a consequence, the shipping stocks are getting killed.
Navios Maritime (NM), Eagle Bulk (EGLE), Genco Shipping & Trading (GNK) and DryShips (DRYS) are down between 10% and 20% since then.
But that's actually the good news.
This phenomenon seems to be a repeat of what happened to the dry-bulk shippers between November and January.
What we are likely seeing is a repeat event, according to Natasha Boyden, managing director at Cantor Fitzgerald in New York.
"It's a great buying opportunity," says Boyden.
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