On February 4th, I have posted on the possible recovery of the Dry Bulk Freight Rates as reflected by the Baltic Drybulk Index, BDI (go here). In the past 2 weeks, the BDI has recovered further (see Chart 1 below).
Chart 1: Baltic Drybulk Rates' daily chart as at February 15, 2008 (courtesy of Investment.tools.com)
At the same time, the 2 shipping stocks that I have mentioned, i.e. Maybulk & Hubline has rebounded quite strongly (see the 2 charts below). In fact, Maybulk has broken to the upside of its short-term downtrend line at the RM4.00 level, while Hubline is still below its short-term downtrend line (with breakout at RM0.51-53 level).
Chart 2: Maybulk's daily chart as at February 15, 2008 (courtesy of Quickcharts)
Chart 3: Hubline's daily chart as at February 15, 2008 (courtesy of Quickcharts)
Based on the above, I would reiterate that shipping stocks could be a good BUY for the medium-term.
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