Sweet Day for Shipping — Monday’s IP Market Recap

by Kyle Woodley | February 6, 2012 5:09 pm

Sweet Day for Shipping — Monday’s IP Market Recap

IPMarketRecap Sweet Day for Shipping    Monday's IP Market Recap[1]All it took was a nudge, but a small move of the Baltic Dry Index needle turned into big results for hurting shipping companies Monday.

The index tracking international shipping prices has been sitting on 25-year lows around 648 since mid-December, making its 1-point gain Monday a reason for celebration. DryShips (NASDAQ:DRYS[2]) was up almost 17%, Diana Shipping (NYSE:DSX[3]) gained 8% and Navos Maritime Holdings (NYSE:NM[4]) climbed about 7%.

Even three years ago, the index was around 12,000, with charter rates running in six figures. Now, carriers are cramped by rates around $6,000 per day. The move in the Baltic Dry Index, however, spurs hopes those rates might be on the rise.

Also Monday, Verizon (NYSE:VZ[5]) announced a streaming-video venture[6] with Redbox parent Coinstar (NASDAQ:CSTR[7]), the latest attack on Netflix (NASDAQ:NFLX[8]). Coinstar, which had talked about adding streaming video business up to a year ago, gained about 2% on the news, and Verizon shares were up 0.8% on the day. NFLX shares initially were hammered on the news, but reversed course by midday and finished Monday up more than 2%.

O’Charley’s (NASDAQ:CHUX[9]) shareholders were delighted Monday with news that the restaurant company would be bought out by Fidelity National Financial (NYSE:FNF[10]) for $221 million, or about $9.85 per share. CHUX stock was trading at $6.92 on Friday, so the offer comes at a 42% premium.

Three Up

Three Down

Kyle Woodley is the assistant editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here[17].

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/investorplace-market-recap/
  2. DRYS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DRYS
  3. DSX: http://studio-5.financialcontent.com/investplace/quote?Symbol=DSX
  4. NM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NM
  5. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  6. announced a streaming-video venture: http://investorplace.com/2012/02/verizon-redbox-alliance-faces-fierce-competition-in-streaming-video/
  7. CSTR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSTR
  8. NFLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFLX
  9. CHUX: http://studio-5.financialcontent.com/investplace/quote?Symbol=CHUX
  10. FNF: http://studio-5.financialcontent.com/investplace/quote?Symbol=FNF
  11. DNDN: http://studio-5.financialcontent.com/investplace/quote?Symbol=DNDN
  12. FIO: http://studio-5.financialcontent.com/investplace/quote?Symbol=FIO
  13. ANF: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANF
  14. SOHU: http://studio-5.financialcontent.com/investplace/quote?Symbol=SOHU
  15. MHS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MHS
  16. HUM: http://studio-5.financialcontent.com/investplace/quote?Symbol=HUM
  17. here: http://investorplace.com/hot-topics/investorplace-market-recap/

Source URL: http://investorplace.com/2012/02/shipping-stocks-dryships-drys-verizon-coinstar-netflix-chux/
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