Cramer on BloggingStocks: No reason to abandon dry bulk ships

Posted Oct 31st 2007 8:15AM by Jim Cramer
Filed under: Market Matters, NYSE Euronext (NYX), Stocks to Buy, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says investors need to look at the longer time frame and see what drove rates higher to begin with -- world trade and a ship shortage.

Freakout on dry bulk ships! That's what happened yesterday. The hot money saw the break in the rates and skedaddled.

Should you?

Do you believe that rates are done going up? Do you know about secret ships that are being built or contracts being broken? Or revised down? Do you know what's falling apart?

Nothing.

Nothing at all.

Maybe that shouldn't matter. Maybe all that mattered were the stocks, and they are now "bad."

I say that if you invest like that, or if you invest without "room" to buy more, sell them right now. You are out of your league and you will sell lower.

I urge you to look at the longer time frame and see what drove rates higher to begin with -- world trade and a ship shortage.

That's what matters. I like Diana Shipping (NYSE: DSX) (Cramer's Take) and I like Paragon (NASDAQ: PRGN) (Cramer's Take) and OceanFreight (NASDAQ: OCNF) (Cramer's Take), too.

We saw panic today in these stocks. There usually is an initial momentum to the second day that takes them down more. That's when, historically, it has been right to buy.

Now, over at stockpickr.com, there is the usual reviling of me for liking something that went down. It is tiresome. But I still answer there and here, and I remind people, endlessly, of NYSE Euronext (NYSE: NYX) (Cramer's Take) $68. And I wish them all well!

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long NYSE Euronext.

Tags: diana shipping, DianaShipping, dsx, featured, jim cramer, JimCramer, nyse europnext, NyseEuropnext, nyx, oceanfreight, ocnf, paragon shipping, ParagonShipping, prgn

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Reader Comments (Page 1 of 1)

10-31-2007 @ 6:49PM

friendlychap777 said...

Seeing a nice rebound in DSX so far today. At 10 am it's gained back about 2/3 of the big loss yesterday.

11-20-2007 @ 6:27PM

tony grimaldi said...

Jim, IM new and was watching when the CEO of NSTK was on. So far IM losing $2000 not a good start with the great JC. What do I do now? I cant afford to sell now. Tony Grimaldi