This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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 - Get Report) 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 - Get Report), 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.

    1 of 3

    Check Out Our Best Services for Investors

    Action Alerts PLUS

    Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    Quant Ratings

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    Stocks Under $10

    Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    Try it NOW
    Try it NOW
    Try it NOW

    Check Out Our Best Services for Investors

    Dividend Stock Advisor

    Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Updates with exact steps to take - BUY, HOLD, SELL
    Trifecta Stocks

    Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

    Product Features:
    • Model Portfolio
    • Intra Day Trade alerts
    • Access to Quant Ratings
    Options Profits

    Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • Actionable options commentary and news
    • Real-time trading community
    Try it NOW
    Try it NOW
    Try it NOW
    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.
    Submit an article to us!

    Markets

    DOW 17,672.60 -141.38 -0.79%
    S&P 500 2,051.82 -11.33 -0.55%
    NASDAQ 4,757.8790 +7.4820 0.16%

    Partners Compare Online Brokers

    Free Reports

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs