SOURCE: Paragon Financial Limited

Paragon Financial Limited

February 01, 2012 08:20 ET

Shares of DryShips and Eagle Bulk Shipping Skyrocket in January as Baltic Dry Index Collapses

The Paragon Report Provides Equity Research on DryShips & Eagle Bulk Shipping

NEW YORK, NY--(Marketwire - Feb 1, 2012) - Shipping stocks performed well in January despite the continued downturn of the Baltic Dry Index. The Guggenheim Shipping ETF (SEA) -- which is designed to measure the performance of companies listed on global developed market exchanges and consists of companies within the maritime shipping industry -- is up more than 11 percent year to date despite a global shipping glut that has pushed shipping rates for Capesize vessels down more than 70 percent this year. The Paragon Report examines the outlook for companies in the Shipping Industry and provides investment research on DryShips Inc. (NASDAQ: DRYS) and Eagle Bulk Shipping Inc. (NASDAQ: EGLE). Access to the full company reports can be found at:

The Baltic Dry Index (BDI), which tracks worldwide shipping rates for dry-bulk cargoes in four vessel classes, has collapsed more than 50 percent so far this year. Hong Kong-based Macquarie Research argues that the drop represents "too much capacity in the face of more modest growth of trade volumes."

According to a recent report from Reuters, slow demand from China is further compounding fleet growth troubles. China's lessened demand for raw materials could "pressure earnings" for shipping companies in the coming quarters, Reuters adds.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the shipping industry register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Despite the bleak outlook, Shipping stocks are up year-to-date. Shares of Eagle Bulk Shipping gained more than 50 percent in January. Eagle Bulk Shipping Inc. is engaged primarily in the ocean transportation of a range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes.

DryShips shares gained roughly nine percent last month. DryShips, Inc., through its subsidiaries, engages in the ownership and operation of drybulk carriers and drilling rigs that operate worldwide.

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