Tuesday, November 17, 2009
Genco Shipping (GNK) Update
James Cramer in tonight's Mad Money discussed the charts on several shipping stocks. Noting what I've been reporting on my blog over the last several weeks. Cramer's picks are dry bulk shipper Diana (DSX) & oil tanker North American Tanker (NAT), both good picks too. He did note that GNK is a more leveraged play, with a higher debt exposure. One other interesting point made by James Cramer, he is 'expecting' a pullback near term before getting in. BINGO! Spot on Jimmy! This is why I have suggested a Jan. $25 covered call, matter of fact for those looking to enter on any pullback consider selling a December $24 put. I'd wait until GNK drops below $25, of course there's 5 weeks left until expiration so the premium will decay. But worth a look, I follow up on this as we approach that time.
Below is an updated chart and the Mad Money vid clip.
*click on chart to expand image