The article from Seeking Alpha linked above postulated that the shipping sector is seriously undervalued and due for a breakout to the upside. I am not sure about this analysis, and believe the shipping sector is composed of those companies that have their financial houses or order and those that do not. A serious amount of debt and future newbuildings casts shadow on the sector.
What I found interesting about the article was this chart of the SEA ETF:
The shipping stocks as a group have shown virtually no movement for half a year. As I noted in a earlier post, shipping stocks were very split in 2009 as to gainers and losers. I think investors interested in this sector are better off analyzing individual stocks and making their decisions from there.
Shipping Sector Flatlines
Shipping: The World’s Cheapest Sector Is About to Break Out — Seeking Alpha.
The article from Seeking Alpha linked above postulated that the shipping sector is seriously undervalued and due for a breakout to the upside. I am not sure about this analysis, and believe the shipping sector is composed of those companies that have their financial houses or order and those that do not. A serious amount of debt and future newbuildings casts shadow on the sector.
What I found interesting about the article was this chart of the SEA ETF:
The shipping stocks as a group have shown virtually no movement for half a year. As I noted in a earlier post, shipping stocks were very split in 2009 as to gainers and losers. I think investors interested in this sector are better off analyzing individual stocks and making their decisions from there.