Nails on the Numbers

Dykstra: The Second-Oldest Profession

 

Every week I try to find you a way to make money in the stock market. This week, we are going to do it with one of the oldest trades known to mankind: shipping, and I don't mean oil.

Excel Maritime Carriers (EXM) is an owner and operator of dry bulk vessels and a provider of worldwide seaborne transportation services for dry bulk cargoes. The company's vessels carry major bulk commodities, such as coal, iron ore and grain, as well as minor bulk commodities such as fertilizers, bauxite, alumina and steel products.

These facts underscore my enthusiasm for this company:

  • Roughly 90% of the world's exports are still transported by ship.
  • The company has delivered seven consecutive years of profitability.
  • As long as countries continue to trade, Excel Maritime's fleet of vessels will be needed on the open seas to service their needs.
  • As I have stated many times in the past, we are always looking for an edge.

    When opportunities arise to buy a quality company with proven earnings growth and which is selling at a severe discount, you must use your "edge" and take advantage. Here's what CEO Christopher Georgakis said in early November about Excel Maritime's third quarter, which featured a 234% jump in year-over-year revenue: "These results reflect the successful integration of our new acquisitions into the initial fleet as well as our consistent fleet deployment strategy of period charters."

    Let me continue: This Greek shipping company has a forward price-to-earnings ratio of 4.41, the return on equity is 40.75%, and its year-over-year quarterly earnings growth is an unbelievable 489%.

    For $13.75, does this sound like a company you want to own?

    Technically, you can buy the stock right here and set a stop loss or add to your position just above the 52-week low, at $12.15. If you want to trade the stock, you should have no problem seeing $15. I believe this stock has a real possibility to move up to $20 in the next three or four months.

    My second pick this week is Celanese (CE), a global industrial chemical company that isn't talked about much; it's a sleeper. But let me tell you, it's getting ready to wake up.

    TheStreet Premium Services

    Jim Cramer
    Jim Cramer's Action Alerts PLUS:
    Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
    OptionsProfits
    OptionsProfits:
    Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
    Real Money
    Real Money:
    Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
    Stocks Under $10
    Stocks Under $10:
    Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn More
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    blog comments powered by Disqus
    Dow Jones S&P 500 NASDAQ 10-Year Note
    12,393.45 1,310.33 2,827.34 15.81
    Oil *
    101.78
    DOWN
    26.41
    DOWN
    2.99
    DOWN
    10.02
    DOWN
    0.44
    10 Yr
    1.58%
    SPDR Gold
    151.62
    -0.21%
    -0.23%
    -0.35%
    -2.71%
    Data delayed 20 minutes

    Top Stories and Tools

    Articles From

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    We respect your privacy.
    Podcasts

    Connect with TheStreet