Anchors Aweigh for Genco

This column was originally published on RealMoney on Nov. 14 at 8:00 a.m. EST. It's being republished as a bonus for TheStreet.com readers.

Dry-bulk ocean shipping companies were the idee fixe of the investment-banking world earlier this year, as several were brought public into an initial public offering market that turned out to be softer than expected. Most took the money and immediately headed south.

In late July, I explained why I believed Diana Shipping(DSX Quote) would rebound, and it has come back by 45%. And now I believe the same happy fate may await Genco Shipping and Trading(GSTL Quote), though it may not get there as quickly.

Genco, which currently sports about a third of the market capitalization of Diana, was the brainchild of Peter Georgiopoulos. If you've owned any of the oil tanker stocks, you may recognize that name, as he was the founder and chairman of General Maritime(GMR Quote). That company went public at around $10 in 2001, promptly fell by 50% by late 2002, and then advanced tenfold to a high of $50.55 earlier this year. ...