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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (27059)	6/11/2007 10:44:33 PM
From: E_K_S	Read Replies (1) \| Respond to of 78659

Hi Paul - Glad to see that you are bullish on the bulk shippers. I have begun to sell a few of the shares I hold in DRYs and SFL as they are up significantly from my original purchase 18 months ago. Each company holds a top five position in my portfolio and I have been peeling off shares so I can rebalance my holdings. As you can see both are well above the S%P 500. finance.yahoo.com^gspc;indicator=volume;charttype=line;crosshair=on;logscale=on;source=undefined At current prices I like SFL as their current dividend w/ profit sharing is now around 8%. They do not have the exposure to the change in the daily rates and continue to make good money financing tankers and offshore drilling rigs. My DRYs position is currently a four bagger and my best performing investment in the portfolio over this time period. If current daily charter rates can hold for the remaining of the year (this is a huge assumption), then DRYs profits should double next year and their forward PE will be less than 5. DRYS is one of the most leveraged dry ship bulkers w/ very short term charters in their fleet. It works great as the daily charter rates increase but the company can loose a lot of money if these rates tank. I plan to sell more DRYs on prices between $45-$50 which could occur if the company can lock in longer term charters next quarter at these high daily rates. ====================================================== With the recent interest rate news, I have been looking at capitalizing on the utility company sell off. I picked up more ELP (Companhia Paranaense de Energia) at $14.10 with the strategy of writing some covered calls on any snap back rally. The stock has rallied over 10% in the last two days. Perhaps this is due to Brazil lowering the rate on the Real. Have you noticed any bargains in the utility sector? There might have been some over reation to the interest rate chatter and the baby got thrown out with the bath water. Any special situations show up on your watch list? EKS