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DryShips (DRYS), Navios (NM) Higher as Baltic Index Moves Off 25-Year Lows

February 6, 2012 3:41 PM EST
DRYS Hot Sheet
Rating Summary:
    5 Buy, 3 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
DryShips Inc. (Nasdaq: DRYS), Navios Maritime (NYSE: NM), and other carriers are seeing a little bit of buying Monday, which could be related to the Baltic Dry Index rising for the first time in just about eight weeks in London.

According to Bloomberg, the Baltic Dry Index moved off of 25-year lows for the first time since December 12th, gaining 1 point to close at 648.

Many owners and operators have simply been refusing to be hired on the generational low costs and the decision is causing prices to increase with less competition in the marketplace. One analyst at Cantor Fitzgerald said the move might signal that rates are near or at the bottom...but cautions that increases all around may not necessarily be in the books.

Vessels hired in December and January fell 18 percent to 749, according to data from shipbroker Clartkson Plc.

On the news, DryShips is up 16 percent, Paragon Shipping (NYSE: PRGN) up 23 percent, Seanergy Maritime Holdings (Nasdaq: SHIP) is up 13 percent, and Navios is 6 percent better.


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