Dryships - My first 100% return on investment

I have blogged that I divested partially my shares in dryships to reduce risk on August 7 2013. Got back all my capital plus some profit. Just one month later, the share price has gone up by another 70%. Currently, the price is officially double of the price which I initially bought at 1.52. Technically speaking, the return is about 50% since I divested some one month ago. No doubt I'm happy about it as its still quite a substantial return.

I initially bought it last year November 2012. Investing period is less than 1 year. Why has it gone up so much? I can only rationalize that the shipping sector is recovering which I had bet on since last year. I had thoughts that the shipping sector might have reached a bottom as it consolidates at a support for many many months.

It may be a small achievement thus far as I blog about this as part of my journey in investing. I had lost a lot in my investment in NOL 3 years ago when the crisis hit. It was also a shipping stock. I had wanted to give up investing once and for all but I choose not to. I choose to learn everything all over again. It may have been because of my losses in NOL that I really learn about the shipping sector. I would say I learnt it the hard way.

The important thing is never give up when you suffer a setback in your investments. Patience and a humble attitude to learn will bring you back up. I hope my story will inspire those of you who lost money in the stock market to not give up. Persevere on and you'll see results one day.

Like my Facebook page to receive instant market updates and notifications of new articles. SG Young Investment is dedicated in helping you to achieve financial freedom.

You can also Subscribe to SG Young Investment by Email

Shipping sector on a recovery

I've posted before that the shipping industry may be on a recovery. First post was on June 20 here and second post was on July 14 here.

I've wrote about the Baltic Dry Index (BDY) and how it is related to the shipping industry. In simple terms, the BDY tracks the cost to transport raw materials. The higher the cost, the higher the index. A higher cost to transport means shipping firms get to earn more on each route.

The BDY has risen by another 25% since the first time i posted about it. Look at the chart here. Dry bulk shipping stocks have already anticipated the move and is on the rise now.

Manufacturing data from the US, China and the Eurozone is showing expansion also. Demand for goods is picking up.

There are 2 shipping stocks listed in the US that have already doubled in price.

The first one is Dryships (DRYS). From a low of 1.49, it has risen to about 2.88 now.

 The second is Diana shipping (DSX). From a low of $6.20, it has risen to about $12.50 now.

How about shipping stocks listed in the Singapore exchange? I've not seen any major movement on shipping stocks listed in Singapore yet. Maybe this would be an opportunity to buy them now at low prices and anticipate the move up. I will never know what will happen. It is purely a speculation. 

Speculation or not? I'll still be watching out for shipping stocks now. There are pretty good fundamental shipping stocks like marco polo marine. Singapore owned NOL may benefit from the recovery also. A caution is NOL has been struggling for many years and we won't be sure whether they can come out of it. 

Let's see what will happen by the end of the year. It is the time to research and watch it carefully now. 

Like my Facebook page to receive instant market updates and notifications of new articles. SG Young Investment is dedicated in helping you to achieve financial freedom.

You can also Subscribe to SG Young Investment by Email

Related Posts:

1. Volatile shipping market shows signs of recovery

2. Quantitative Easing - how it affects the economy and the stock market?