by Kyle Woodley | February 6, 2012 5:09 pm
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) was up almost 17%, Diana Shipping (NYSE:DSX) gained 8% and Navos Maritime Holdings (NYSE:NM) 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) announced a streaming-video venture with Redbox parent Coinstar (NASDAQ:CSTR), the latest attack on Netflix (NASDAQ:NFLX). 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) shareholders were delighted Monday with news that the restaurant company would be bought out by Fidelity National Financial (NYSE:FNF) 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.
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.
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