DAC, Good way to play the marine shipping group
I have taken a long on todays price action. I really like this story because I think they are the best way to gain exposure to the marine shipping group while being more protected against the eventual return to normal of shipping costs.
DAC charters to marine shipping companies. I was originally looking into ZIM and EGLE as potential buy candidates, in that order. I loved ZIM's chart and relative strength but then I discovered they lease all their freighters and since charter rates are up I decided that EGLE , which also has a nice chart and fundamentals but owns its ships outright would outperform .
But, then I decided on an option better than both those plays . Why not buy a strong name that charters to the distributors ? Afterwards I found DAC.
In short, delivery costs are way up ,50% more on some contracts apparently ! . But , so are charter costs :).
I think that delivery costs will eventually cool down but there is a good possibility that charter costs will remain somewhat elevated going forward and is potentially a smarter play .
*I see that DAC's institution ownership has gone up Q/Q and that their fund ownership accounts for 51% of float .
*The group is strong.
*The earning and sales data are very good 2021 and 2022 eps both revised up. Forecasted EPS within the 13$ annual range .
*I also really like that although much of the shipping industry was trending significant losing years around 2014 , DAC was profitable every year around that period .
Earnings are due May 10th so be aware , but took a starter today .
DAC charters to marine shipping companies. I was originally looking into ZIM and EGLE as potential buy candidates, in that order. I loved ZIM's chart and relative strength but then I discovered they lease all their freighters and since charter rates are up I decided that EGLE , which also has a nice chart and fundamentals but owns its ships outright would outperform .
But, then I decided on an option better than both those plays . Why not buy a strong name that charters to the distributors ? Afterwards I found DAC.
In short, delivery costs are way up ,50% more on some contracts apparently ! . But , so are charter costs :).
I think that delivery costs will eventually cool down but there is a good possibility that charter costs will remain somewhat elevated going forward and is potentially a smarter play .
*I see that DAC's institution ownership has gone up Q/Q and that their fund ownership accounts for 51% of float .
*The group is strong.
*The earning and sales data are very good 2021 and 2022 eps both revised up. Forecasted EPS within the 13$ annual range .
*I also really like that although much of the shipping industry was trending significant losing years around 2014 , DAC was profitable every year around that period .
Earnings are due May 10th so be aware , but took a starter today .
Comment:
Great break up , great volume , not such a great wick ... Watching closely might be setting up for a retest . Overall very positive .
Comment:
Decided to lock in profits , that wick looks bad and markets uptrend is at risk . And we are in somewhat of a pop and squat market so profit it is . Will likely attempt re-entry later . Love this story .
Comment:
Opened weak with sellers taking control not in this for now
Trade closed: stop reached:
Have been stop out of this with the market conditions , going to step back from new trades unless they are short term or hedges . Close to cash at 30% exposure at this time
艾力克~