Usually, I would stay well away from the shipping sector. Depressed spot rates caused by over capacity and high levels of debt, have wreaked havoc across the sector for much of the past five years. Many shippers have gone under as a result.
However, there are now some green shoots appearing across the industry. One company that really seems to be at a turning point is DryShips Inc. (NASDAQ:DRYS).
DryShips, a risky bet
Make no mistake, DryShips is a risky bet. The company is saddled with debt and highly exposed to volatile shipping rates. But for the patient, the risk/reward looks attractive.
DryShips has three main lines of business. First and foremost, the company's main line of business is drybulk shipping. Secondly, the...
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