Dryships (DRYS-Q)

This is a sector that is dramatically out of favour. He keeps looking at them, and then he looks at the debt loads, the debt load on almost every one of these companies is horrible. A lot of them have also been listed for less than 10 years. So he wouldn’t buy because of those reasons. This one really doesn’t appeal to him.

An interesting story. Recalls seeing it take off like a rocket. It may be time to take a profit on it. prefers SEA-N, an ETF.

An excellent sector to be looking at. A lot have been beaten down. This one has recently had a tremendous run. A lot of these companies do well when the economy does well. He doesn’t know the financials on this one that well, but one that he does follow more closely is Nordic American Tankers (NAT-N). The CEO keeps saying how well they are doing and yet it is not reflected in the stock price. But they also have a huge debt load, which scares him.

Chart shows a pretty substantial base and is currently attempting to break out. If it breaks up through $2.40 and has volume, it could be very positive.