Shipping Stocks

#1
Hi
Can someone please explain why the price of Mercator Lines has fallen from around Rs.152/- to Rs.56/- in a single day? It is a good company and the prospects of the shipping sector are bright as well.
Thanks
 

Traderji

Super Moderator
#2
maruthinvest said:
Hi
Can someone please explain why the price of Mercator Lines has fallen from around Rs.152/- to Rs.56/- in a single day? It is a good company and the prospects of the shipping sector are bright as well.
Thanks
It is trading ex-bonus today. They have announced bonus shares in the ratio of three shares for every two held.
 
#4
Hello,

Is it a good buy today - Mercator Lines at this price of 36 Rs. around?

Please advise, also advise with yourviews on Shreyas shipping.

Thanks.

Sweety
 
#7
hello friends,

I would not recommend you to buy shipping stocks currently as the freight rates of shipping companies are typically at their lowest from April to October and for sure these stocks will come down. I can tell you this with sureity as I am working in a major shipping company in London in the commercial department and track shipping rates etc on a daily basis.

Rest is your call. It is just my advice to this trading community from whom I have myself learnt a lot.

Cheers

Nitin
 
#9
Sweetys,

Market rates for shipping companies have been very much lower this year as compared to last year. Profits as shown by companies will be very much lower for fy06 as compared to fy05 as fuel costs have been higher and freight rates lower.

In any case, the time frame from april to October are always weak periods for the shipping industry due to lower demand in the major freight markets around the world. Thus my explanation to keep away from shipping stocks.

However, if u compare shipping industry 3rd quarter and 4th quarter profits, then 4th quarter profits will be marginally higher as fuel costs have been lower in the fourth quarter.

Hope this explanation is of some use to you.
 

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