Diana Containerships Inc (NASDAQ: DCIX)
Diana Containerships is having a rough day in the market today. This follows declines that we saw on the stock yesterday. However, is this what the stock’s destined for? Are further declines in the running? Today, we’ll talk about what we’re seeing from DCIX, why, and what we’ll be watching for with regard to the stock ahead.
What We’re Seeing From DCIX
As mentioned above, Diana Containerships isn’t having the best of times in the market today. Following the declines that we saw on the stock yesterday, it has traded in the red all day again today. At the moment, DCIX is trading at $4.40 per share after a loss of $0.65 per share (12.87%) thus far today.
Why The Stock Is Falling
The truth is that DCIX isn’t the only stock in the shipping industry that’s falling. In fact, chances are that you’re seeing red sector wide if you’re taking a look. At the end of the day the entire sector is in the middle of a popping bubble. Last week, many stocks across the sector saw massive gains. In fact, some gained as much as 1,500% in a matter of days.
While the reason for the gains was understandable, this type of sector-wide movement screams bubble. At the end of the day, the sector climbed too high, leading to cold feet. Now, Diana Containerships and others in the sector are going through a correction that is bringing their value down to a more sustainable rate before growth can continue.
What We’ll Be Watching For Ahead
Moving forward, we believe that the value of DCIX is likely headed up. At the end of the day, the Baltic Dry Index is climbing, and Trump is a great president for the shipping sector as a whole. This, in combination with the fact that it seems as though we are at the bottom of the correction (at least in the case of DCIX), leads us to believe that now may be a great time to consider buying the stock. Nonetheless, we’ll be watching the stock closely and bringing the news to you as it develops!
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[Image Courtesy of Public Domain Pictures]