The Fed is now widely expected to cut interest rates when they meet in September..., maybe not everyone is convinced, but anyway the Fed ultimately pursues objectives like: stable prices, low unemployment and growth, regardless the meeting is this September or next. In case Fed cut it won't be particularly surprising per se but is going to be another crucial test for the Chairman. One of the most reliable effects of eased monetary policy is on the housing market, where lower interest rates mean lower monthly mortgage payment what as result is supposed to weather the risk of massive defaults on subprime mortgages and heavy debts considered a big threat to U.S. economic prosperity, bigger than terrorism, a panel of U.S. business economists said on Monday.
Lower interest rates also induce state and local goverments to increase the size of their capital budgets. But what's a the place to be:
Financials and Consumer Discretionary sectors may be the place to be if this scenario plays out, and Industrials may also do well outperforming six to 12 months later.
I believe that my DryShips, Inc. (DRYS) Strategy Lab Open portfolio stock will benefit as the Marine industry is cyclical and so lower interest rates is healthy environment for its business. When all the second hand acquisitions and disposals are concluded by the end of the first quarter of 2008, DryShips' fleet will include 46 drybulk carriers comprising 5 Capesize, 31 Panamax, 2 Supramax, 1 Handymax and 7 newbuilding drybulk vessels. Albeit the easier repayments of eventual company's debt and easier financing of the new buildings through the year 2010 this company is in good position to benefit from such scenario, going forward. Eased monetary policy is healthy for the global economic growth too. The company's fleet carries various drybulk commodities, including coal, iron ore, and grains, bauxite, phosphate, fertilizers, and steel products all necessary for various industries worldwide.

Comments: View Comments |  Monday August 27, 2007

DRYS shares had a setback lately on selling frenzy even though has nothing to do subprime mortgage problems or significant change in fundamentals. A confluence of the fundamental factors remain intact, history too. So why I have selected DRYS in my portfolio ? Due to scents of the past, maybe, or for other reasons? Anyway, I'm flipping a ducat in this amphora!

past

The Greeks, despite the struggles they have gone through history, have remained mariners without interruption so the aspect of their character. It's like love affair between the Greeks and the sea, an inseparable couple, two inseparable elements of life. Almost all of the Greek shipowners come from the rocky Greek islands. The neighboring islands of Chios and Inoussai,for example, have produced such shipping families as Lemos, Kulukundis, Pateras, Carras, Papalios...Traditionally, boys begin as sailors and send their wages back to the island to feed the family. If enough sons go to sea, the family may eventually save enough money to buy an old boat and if the ship makes money, the family buys another, then another. Most Greek shipowners started out this way!
So, I believe, they know about secrets of the shipping today, about how to mange vessels and they will be the first to weather future storms. Try to decipher through the fixtures on the Baltic Exchange about how their philosophy beats other at any time. Many times the Greek shipowners get a higher freight for some reason.

present

Well, DryShips, Inc. engages in the ownership and operation of drybulk carriers worldwide. The company's fleet carries various drybulk commodities, including coal, iron ore, and grains, bauxite, phosphate, fertilizers, and steel products.
By the way, I have been sailing on Panamax bulk carriers so believe that one of the DRYS vessels is loading coal today in Richard's Bay (South Africa), or sailing unfixed in ballast for Key West for order, eventually loading grains in Mississippi river, later. Not much has changed for the last 20 years or so.
In fact, on Aug 21, 2007 -- DryShips Inc. (NasdaqGS:DRYS - News), announced its unaudited financial and operating results for the second quarter and first half ended June 30, 2007.more
George Economou, the Company's Chairman and Chief Executive Officer of DryShips Inc., commented:
"We are pleased to report a second consecutive quarter with record EBITDA. We remain committed to implementing our previously stated chartering philosophy and to position more vessels to trade in the spot market on a voyage by voyage basis as the vessels are coming off previously concluded short-term charters. As of today, 52% of our fleet operating days for the remainder of 2007 remain unfixed.
"We continue to selectively add new and modern vessels to our existing fleet while disposing of older and smaller vessels, with a goal towards ensuring the longevity and quality of our fleet's earning capacity. Once the recently announced sale and purchase activity has been completed by the end of the first quarter of 2008 the Company's fleet will consist of a total of 46 vessels (including 7 new buildings) with an average age of just below 9 years, well below the industry average of about 13 years. "The outlook for 2008 remains positive with fewer vessels being delivered from the shipyards and Chinese demand projected to remain strong. DryShips will have approximately 17% more fleet operating days compared to 2007 and with approximately 97% of its fleet operating days unfixed it is in a unique position to take full advantage of this opportunity."

To say, that the Marine industry is mature, cyclical, and highly fragmented, but from 2004 to the present, the S&P Marine Index showed robust growth compared to the market as a whole, with Asian-Pacific routes showed the greatest growth. The demand for commodities from China and India combined with the shortage of dry bulk ships, is leading to an enormous increase in dry bulk rates, which for cape size ships are now almost $95,000 a day. The cost to operate these ships is under $10,000 a day.
It appeals DRYS revenue growth above industry average and ROE at 23.90%. Global growth would help DRYS shares to gain new higher territories.

future

The shipping industry has always had something to do with the past, elegantly simple for the Greek shipowners; it seems like to get as close as to having next month's shipping newspaper, today!

Comments: View Comments |  Wednesday August 22, 2007

from pounding for stocks at every angle imaginable due to leveraged quick trading from successful hedge funds leading accounts rapidly to big losses after receiving a margin calls and selling the most liquid securities, to making investors feeling like a sailor in a storm riding waves of uncertainty, anxiety, and leaving them directly hurt. Albeit their sophisticated trading methods not everything had gone perfectly, though. Ironically, maybe they have adopted psychology where an intelligent player should always win, that's what Kit believed playing blackjack in the Ken Fallett's "Whiteout" thriller. No thanks, nothing intelligent in it. It was exciting time for them with negative results!
I wouldn't jump on conclusion that everything is over after Fed cutting discount rate in surprise, a pristine climate is going to develop by the time and slowly, investors with long investment horizon will benefit. Now is time for deep thinkers. An intelligent investor has other types of recipes.
Market volatility won't go away any time soon, hedge funds are here to stay.
Count on it!

Comments: View Comments |  Monday August 20, 2007

well organized storm with abundance of bear barrage coming from any angle imaginable and apprehension what the Scientific Adam has had to face and weather it, as well. This is what caught my eyes this morning. Albeit, it's a slippery slope for stocks, markets dive, it does'nt necessarily mean an investor has to behave in panic mode in a such market chaos we are in, lately. I continue to add to my positions so:

buying $15000 or 2460 shares of North American Galvanizing & Coatings Inc. (NGA), at the open today. More about why NGA is in my portfolio, later.

NGA, through its wholly owned subsidiary, North American Galvanizing Company, engages in the hot dip galvanizing and coatings for corrosion protection of fabricated steel products in the United States....

Figuratively, I believe it will protect my portfolio from corrosion going forward!

Otherwise, SLO competition is really showing me a good time!

Comments: View Comments |  Thursday August 16, 2007  |  Stocks: NGA,

GROW is a top holding #6 in my portfolio with inception return equals 6.79%. GROW has shown resilience of late.
Order to buy additional $20000 or 900 shares at the open.
and
order to buy additional $15000 or 290 shares at the open in SID that announces today its results for the second quarter of 2007.(Companhia Siderurgica Nacional CSN (BOVESPA: CSNA3) (NYSE: SID Posts Record Net Income of R$1.7 Billion in the 1H07 and EBITDA Reaches R$2.3 Billion).

Comments: View Comments |  Wednesday August 15, 2007

I empowered Huron Consulting Group Inc. (NASDAQ: HURN) position few days ago following Second Quarter 2007 Financial Results:
Revenues of $118.3 million for Q2 2007 increased 74.5% from $67.8 million in Q2 2006.
Diluted earnings per share for Q2 2007 were $0.56 compared to $0.36 in Q2 2006.

But, for what reasons HURN takes part in my portfolio?

Huron Consulting Group Inc. is an independent provider of financial and operational consulting services. The company provides its services through two segments: Financial Consulting and Operational Consulting. The Financial Consulting segment (57% of 2005 revenues) provides services that help clients effectively address complex challenges that arise from litigation, disputes, investigations, regulation, financial distress and other sources of significant conflict or change.
The company's strengths, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins telling me a story of a quality stock. HURN is a company that exhibit both a high earnings yield and high revenue growth and as such is generally more attractive.

Price history/! year

Technically, this stock appeals to me, as well:

Relative Strength is Bullish.
Up/Down volume pattern indicates that the stock is under Distribution.
The 50 day Moving Average is rising which is Bullish.
The 200 day Moving Average is rising which is Bullish.
Look for Support at 65.87

Overall, I see HURN stock as
opportunity for the long term investor.

Found educational Guided Research at msn money, too.

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Comments: View Comments |  Tuesday August 14, 2007

At sea......Virtual story continued...

No trades today.

Weather: careless this time around, all water around us, as Thales of Miletus (about 640 BCE) declared water to be the basis of all things The crew: GROW DRYS WNR PCU ICE RIO HURN TNH CNS IDSA PCP DECK NGA AAPL SID LOGI USNA XTO IMO BRY still on board.
Have a good weekend!

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Comments: View Comments |  Friday August 10, 2007

decisions we make in the stock market investing simply don't exist.
So, I'm going to empower.
AAPL buying additional $15000 or 110 shares and
WNR buying additional $15000 or 260 shares after Western Refining Reported Record Second Quarter Results.
at the open.

So long you keep a longevity of your portfolio and admit the mistakes you've made along the way, you have a great chance for success. Don't you think so? I try to make my portfolio like well balanced wine, and wine has 200 different scents on it's own, or, maybe, you would like to bocome the next Warren Buffett, but wait and read this:
Superb managers are too scarce a resource to be discarded simply because a cake gets crowded with candles. Moreover, our experience with newly-minted MBAs has not been that great. Their academic records always look terrific and the candidates always know just what to say; but too often they are short on personal commitment to the company and general business savvy. It's difficult to teach a new dog old tricks.
Warren Buffett Letter to Shareholders, 1988.

Again, not easy at all, but it's worth trying!

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Comments: View Comments |  Thursday August 9, 2007

are taking part in my portfolio with NGA touching bottom around -24.68% inception return. All losers are here to stay till the end of this competition as my additional rules remind me about it:
-no stocks will be added---see also: Crossing start line post
I believe, these rules should help me:
-to practice discipline
-not trading too much
-to make a balanced decision
-to keep emotions away and
-survive
By the end, they will carry just different weights on. Don't expect any flamboyant results, though. It's on going challenge for me.

Portfolio graph looks like this, to date:

I'm very curious, what kind of different picture my portfolio is going to paint? That's to be expected!

At sea...Virtual Story
Very tranquil sailing. The crew is very busy sharpening tools, enjoying Fed bounce and digging through inspiring quotes and stories.

James Cook

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Comments: View Comments |  Wednesday August 8, 2007

Huron Consulting Group Inc. (NASDAQ: HURN) is one of the stocks in my Portfolio with current return of 6.34%. Following today's Second Quarter 2007 Financial Results:
Revenues of $118.3 million for Q2 2007 increased 74.5% from $67.8 million in Q2 2006.
Diluted earnings per share for Q2 2007 were $0.56 compared to $0.36 in Q2 2006.
I'm empowering this position!
Order to buy additional $10000 or 140 shares placed before markets open.

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Comments: View Comments |  Tuesday August 7, 2007

Of course, my portfolio could have done better since start. Albeit market's volatility the stratification page is shaping up winners and losers and I wouldn't be surprised to see different picture in the weeks ahead. What's a chance that happening?"great" Confidence and insecurity have been emotional characteristics of our ancestors, as well. Would like to hear the answers from grizzly bear about nature of the things.
Is it off topic?
Maybe, not!
Market is doing what usually does, even looking further back in history.

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Comments: View Comments |  Monday August 6, 2007

Buying additional 220 shares of this company.
Can this stock go any higher?
Yes, from this level!
Terra Nitrogen Company, L.P., through its subsidiary, Terra Nitrogen, Limited Partnership, engages in the production and distribution of nitrogen fertilizer products for use in agricultural and industrial markets.

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Comments: View Comments |  Friday August 3, 2007

Dear Viewers,
Just wanted to remind you that I'm, imaginary , on board the sailing vessel named ASTRA(of any size), built In the middle of the 13th century when Venetian bankers began to trade in government securities. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in government securities during the 14th century, together with the crew of 20(stocks).
We are crossing North Pacific, eastbound, expecting to land in the vicinity of the West Coast by the end of December. There is a mark called Strategy Lab Open Lighthouse, looks like The Old Lighthouse of Patras, we are eager to meet and applaud the winners of this competition, maybe, to taste a glass of prosecco, sparkling wine, Bill Gates might like, too.

I'll present each crew member as per SWOT facts later.

weather: choppy sea, sudden changes in the wind direction since start.

life on board: walking, reading, experiencing
"practice makes perfect"

crew : GROW DRYS WNR PCU ICE RIO HURN TNH CNS IDSA PCP DECK NGA AAPL SID LOGI USNA XTO IMO BRY

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Comments: View Comments |  Thursday August 2, 2007

sectorwise

Consumer Discretionary 5%
Consumer Staples 5%
Energy 21%
Financials 15%
Industrials 25%
Information Technology 10%
Materials 20%

more

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Comments: View Comments |  Wednesday August 1, 2007