Diana Shipping - Recent plunge in stock prices offers opportunity to accumulate
Stock prices of Diana Shipping Inc (DSX) and other companies operating in the dry bulk shipping market have been on a roller coaster ride in 2022. After a dream run in 2021, the stock price of DSX came under pressure in the beginning of 2022 before the rally from February to May. Covid-19 restrictions in China and increased tensions between Russia and the West in the aftermath of the conflict in Ukraine took a toll on dry bulk shipping equities in June and the early part of July before the stocks started to improve from the latter half of July. News of political uncertainty in China, fears of a potential recession in the EU, deteriorating outlook of the global economy and economic slowdown in China outweighed the impact of strong financial performance of DSX, taking the company’s stock price down from the latter half of August.Overall, DSX’s stock fell (6.2% YTD) and underperformed the Drewry Dry Bulk Equity Index (9.8% YTD) which benefitted from DS Norden’s (122.5% YTD) exposure to the product tanker market. On the other hand, DSX’s stock outperformed the S&P 500 which dropped 16.2% YTD. Although the dry bulk shipping market is expected to remain under pressure, we believe DSX’s chartering strategy provides downside protection for company’s revenue and profitability. Accordingly, the expected potential upside of 17.8% offers attractive opportunity for long-term investors.
Diana Shipping is a holding company. Through its subsidiaries, Co. is a global provider of shipping transportation services. Co. specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes. As of Dec 31 2017, Co.'s operating fleet consisted of 50 dry bulk carriers, of which 22 are Panamax, five are Kamsarmax, five are Post-Panamax, fourteen are Capesize and four are Newcastlemax vessels, having a combined carrying capacity of approximately 5.8 million dwt.
Drewry, since 1970, has been providing research and advisory services on the global Maritime and Shipping industries and has established itself as a firm with long history of credibility and expertise on various aspects of the maritime industry. Leveraging this in-depth market knowledge and understanding, we have extended our offering to deliver a unique, independent investment research service on globally listed companies operating in the maritime industry. Under the brand Drewry Maritime Equity Research and in accordance with the FCA, DMER led by Rahul Kapoor and his team, offers fundamental analysis on listed companies. DMER analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. By combining these market-leading resources with seasoned sector expertise and commercial awareness, we are able to offer a highly differentiated and comprehensive investment research service to prospective investors in listed maritime companies. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.