Wachovia Downgrades Dry Bulk Stocks; Rough Road For Day Rates In Near-Term
DSX Hot Sheet
Rating Summary:2 Buy, 2 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Wachovia downgrades Diana Shipping (NYSE: DSX), Eagle Bulk Shipping (NASDAQ: EGLE) and Euroseas Ltd.(NASDAQ: ESEA) to Market Perform.
Wachovia analyst says, "We are downgrading shares of DSX, EGLE, and ESEA as we believe there are few, if any company specific or sector specific catalysts in the near-to-intermediate term. We believe dry bulk day rates may see additional near-term downside, as Chinese iron ore imports will likely slow in the coming months on elevated inventories, and the seasonal grain trade appears to be near or slightly beyond its peak. While dry bulk stocks may continue to trade on improving global sentiment and optimism over additional Chinese stimulus, we believe dry bulk’s risk/reward profile has normalized following our upgrade last month, and we advise clients to move to the sidelines for the time-being. We continue to believe financially secure stocks such as DSX and ESEA are attractive long-term value plays, however we believe better entry points may emerge over the intermediate-term."
Euroseas Ltd. (Euroseas) is a provider of worldwide ocean-going transportation services.
Wachovia analyst says, "We are downgrading shares of DSX, EGLE, and ESEA as we believe there are few, if any company specific or sector specific catalysts in the near-to-intermediate term. We believe dry bulk day rates may see additional near-term downside, as Chinese iron ore imports will likely slow in the coming months on elevated inventories, and the seasonal grain trade appears to be near or slightly beyond its peak. While dry bulk stocks may continue to trade on improving global sentiment and optimism over additional Chinese stimulus, we believe dry bulk’s risk/reward profile has normalized following our upgrade last month, and we advise clients to move to the sidelines for the time-being. We continue to believe financially secure stocks such as DSX and ESEA are attractive long-term value plays, however we believe better entry points may emerge over the intermediate-term."
Euroseas Ltd. (Euroseas) is a provider of worldwide ocean-going transportation services.
You May Also Be Interested In
- UPDATE: UBS Downgrades Wisconsin Energy (WEC) to Neutral; Taking Some Off The Table
- Wedbush Downgrades Maxwell Technologies (MXWL) to Neutral; Elevated Competitive and Supply Chain Risks
Create E-mail Alert Related Categories
DowngradesRelated Entities
WachoviaSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
