SOURCE: The Bedford Report

The Bedford Report

February 22, 2011 08:46 ET

Assessing the Volatility in Dry Bulk Stocks

The Bedford Report Provides Analyst Research on DryShips & Diana Shipping

NEW YORK, NY--(Marketwire - February 22, 2011) - The traditional indicator of the shipping industry's health, the Baltic Dry Index has plummeted in 2011 as demand for dry-bulk shipping has fallen alongside commerce levels. Export bans in emerging markets such as India, and devastating flooding in Australia and South Africa have hurt suppliers. Meanwhile an oversupply of ships and mediocre demand has continued to damage a fragile recovery. The Bedford Report examines the outlook for companies in the Shipping Industry and provides research reports on DryShips, Inc. (NASDAQ: DRYS) and Diana Shipping, Inc. (NYSE: DSX). Access to the full company reports can be found at:

The Baltic Dry Index posted modest gains last week as Panamax rates in both the Atlantic and Pacific trading regions continued to improve, pushing the Baltic Dry Index up 35 points to 1,271. Although the signs to report are good we are still a long way from 4000 achieved last May. The index is down more than 40 percent in 2011.

According to the Baltic Exchange the average rate for a "Capesize" ship has fallen to just below $5,000 a day -- a ghastly statistic considering most Capesize ships incur operating costs of between $7,000 and $10,000.

The Bedford Report releases regular market updates on the Shipping Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

DryShips and Diana Shipping have not seen their stocks slip nearly as much as the Baltic Dry Index in recent months. Most analysts argue that diversification is considered the reason.

Diana Shipping has moved heavily into the container ship sector. Last month Diana Shipping said it plans to distribute about 2.7 million shares in its subsidiary Diana Containerships to Diana Shipping shareholders at the rate of 0.0325 shares in Containerships for every 1 share of Diana Shipping.

Meanwhile DryShips has aggressively moved into the oil rig industry. Last month the company completed a private placement of shares worth a total of $500 million in its wholly-owned subsidiary Ocean Rig UDW Inc.

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