One need to look carefully what shipping sector does and what is it worth.
For any manufacturing industry to work, they need raw material, fuel (OIL) and other supplements and they get them via Ships. Then once the material is produced, they again need to ship their finished goods.
So for economy point, if its contracting, either all industry shut down, or they reduce their prices to boost demand or they maintain their manufacturing with a hope of revival. So if they are shutting down completely, means whole world is going to stop with no shippings done which practically is never possible so shipping business can never end so you can never lose all your money in this sector. :)
Then in current scenario, when industrial demand is picking up back, they will need ships for raw material as well as finished goods, so this sector is set to revive fully with revival of economy.
Even if we say economy won`t revive back fully, then either industries will reduce prices (contract their margins) to boost demand, which will keep shipping consistent.
So for now scenario, if you are negative to stable on world, shipping as a sector is stagnant sector and if you are betting on revival and then back to growth, shipping as sector is a highly growing sector.
So if it is a stagnant sector, purchasing a shipping stock at PE of 7.5 at its book value means you are investing in FD.
If revival and growth are seen, then this sector deserves higher PE of 12-15
GE shipping as a stock is best buy from all these point of view. It is trading at PE of 4 and at a discount to its book value so it is going to be atleast double from here to be justified to stagnant economy and tripple for a reviving/ growing economy.
I don`t rule out short term upsides / downsides as it is a stock and not a bond, but overall it is the best pick i can find in current markets.
P.S. A new ship takes around 2 years to be built, so if demand rises, its not like that there will be new ships coming in to cater to those demands. Instead same ships will raise their prices and thats how shipping industry prices and margins are going to improve with revival of economy.
So i place a strong buy of GE shipping at these levels.
Another 2.4% jump in Baltic Dry Index takes the BDI to 2832. Technically, It has crossed the major resistance of 2774 and now it is poised to go to 3350 levels.
GE Shipping immediate targets needs updating accordingly to 350-375 kind of levels.
Yea right chief, I totally agree with you. With global economies on recovery path, tanker rates will go up smoothly. Today BDI climbed another 3% closing at 2917. GE shipping cannot ignore BDI so it will shoot up soon. Atleast being fundamentally strong too, this stock has nothing to lose but much much to gain..
DEAR CHIEF.AFTER GE HAS CLOSED AT 293.95 ON NSE TODAY, WHAT WOULD BE THE LEVELS FOR NEXT 2-3 DAYS.SIR YOUR URGENT ATTENTION AND ADVICE WILL BE APPRECIATED.
REGARDS
dear noms.ge shipping is good but frankly nifty levels and not fundamentals of GE will decide whether 305 will be touched. Best is to buy stocks on panic selling and most retail investors miss such buying opportunities. what price did u buy GE shipping at?if you have not bought, wait for nifty to either cross 5100/5150 for a target of 5200/5250/5300 on a closing basis or wait for the big drop to about 4650/4700 levels to enter markets again. hope this helps.
DEAR SIR. NEED YOUR VIEWS ABOUT BAJAJ HINDUSTAN. SP TULSIAN IS OF THE VIEW THAT BAJAJ HINDUSTAN WILL HAVE A PROFITABILTY OF 50 LAKH BAGS OF SUGAR DUE TO THE PRICE SET AT RS. 165 BY UP GOVT. CAN ANYONE SHED MORE LIGHT ON THIS AND ARRIVE AT A POSSIBLE VALUATION AND THEREFORE PRICE TARGET FOR BAJAJ HINDUSTAN TILL ABOUT MARCH `10.
RAJAT BOSE HAS SUGGESTED IN A RECENT CLIP SHOWN ON CNBC THAT BAJAJ HINDUSTAN, BALRAMPUR, SHREE RENUKA AND SAKTI HAVE A GOOD CHANCE OF APPRECIATING 25-30% FROM CURRENT LEVELS. CAN SOMEONE SHED LIGHT ON THE REASONS BEHIND SUCH A MOVE.
REGARDS...
sugar: this year is going to be very good for investors - not for growers- there is going to be huge shortage this year
Brazil- and other leading sugar producing countries are with floods and we are with draught.
huge gap between production and consumption
I feel the pinch on the growers- more growth - they suffer with lower prices- less production- lesser turnover due to lower out put
WHEN TOMATOES CAN BE PRESERVED FOR OVER A YEAR TO ADJUST THE DEMAND AND SUPPLY- WHY NO ACTION IS TAKEN TO INCREASE THE GOVERNMENT HOLDINGS TO MEET SUCH SHORTAGE.
| NIFTY 
