The dry-bulk shipping stocks have been good to investors this year. But things stand to get a whole lot better.Why, when things are up so much, can they stand to go even higher? There are three reasons: coal, the earthquake in China and the credit crunch. First, a quick review of how things got to this point. Since I first highlighted the sector in late January, shares of DryShips ( DRYS), Navios Maritime ( NM - Get Report) and Eagle Bulk Shipping ( EGLE - Get Report) are up 73%, 42% and 52%, respectively. These stocks, the "Class A" acts in the dry-bulk shipping sector, have followed the roller-coaster ride in the cost of freight rates. Last November the Baltic Dry Index, which measures the cost of moving bulk commodities such as ores and grains, started plunging from a November high of 11,039 down to a low of 5,615 -- a 49% drop -- on Jan. 29.
Three Reasons to Buy Shipping Stocks
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