Diana Containerships Inc (NASDAQ: DCIX) is falling hard in the market today, switching courses from the recent declines that we’ve seen on the stock. However, as we expected when we went digging, the company has not released any news either via press release or SEC filing. Nonetheless, there’s a reason for the declines today, and the movement may be creating a real opportunity. Today, we’ll talk about:
- Why DCIX is falling;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
DCIX Declines Might Become A Strong Opportunity
As mentioned above, Diana Containerships is having a very rough start to the trading session this morning, falling in double digit percentages early on. Nonetheless, the drop could prove to be an opportunity. Here’s what’s happening:
Over the past month or so, the shipping sector has been headed up and DCIX has been in line with the masses. Much of the gains have to do with the end of the Postal Treaty that was recently announced by President Donald Trump. At the end of the day, the end of the treaty will open opportunities for shippers to make more money through increased prices in regions where the treaty kept them low. So, there’s definitely a reason for the excitement that we’ve seen.
However, after several sessions of running for the top, it seems as though profit taking is starting to set in and the shorts are getting involved once again. In many cases, when we see declines like this, they are big red flags the scream “STAY AWAY.” However, in this case, the declines may be an opportunity to get in on future gains at a discount.
Moving forward, DCIX and other shippers have a tremendous opportunity to improve revenues. At the same time, one of the larger costs to bulk shippers is fuel. However, oil has been dropping over the past month, reducing costs to these shippers. Considering this, there’s a decent argument that this and other stocks in the sector have plenty of room to run ahead. So, after the dip, the gains may continue, and those that get in now may be counting their profits soon!
What We’re Seeing From The Stock
At the end of the day, Diana Containerships isn’t having the best of days in the market today. As traders and investors take profit, the stock is falling, opening the door for the next round of investors and traders to get in at a discount. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:31), DCIX is trading at $1.88 per share after a loss of $0.22 per share or 10.48% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on DCIX. In particular, we’re interested in following the story surrounding the company’s continued work to take advantage of the changing tides in the shipping sector. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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