Wednesday, October 21, 2009

GNK Head Fake???

WOW! What a day for stocks and Genco Shipping (GNK)...I forewarned of the possible pullback @ $24! That said, I also stated last night that one should accumulate shares and load up at $21. This morning entry was $22.90..looking to add more @ $21 and down the road sell covered calls to lower the cost basis. So is GNK's move a head fake? NO as I stated, accumulate near term, this stock is volatile and can move 20% in a week very easily. They report earnings Oct.29th, consensus is for lower earnings..but my outlook is for higher commodity prices and a global recovery., Just look at the recent IPO news for spot prices and shipping, now is the time to get in.

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