Diana Shipping, DSX Kicks off 9%+ With Issues

Diana Shipping, or DSX is one of a group of dry bulk carriers of things such as iron ore, coal and grain we've been up on at The Hoe, for it's good looks, which are almost TGTBT, with a current yield of 9.90% standing still.

DSX has been growing steadily over the last several months, which has given buyers a hardy capital gain.

DSX has gathered fans, to be sure-- but it's P/E has grown toppy at over 18, which does not exactly leave a wide margin of error for, say, broad market declines, or say something unforseen, such as a ship running a ground, as it did this week. The repair looks to be in the range of 600k, and time lost shipping things is estimated to cost the company 600k in opportunities to earn.

The market noticed, and DSX sank some today by a sizeable sum, enough to hit The Hoe's trailing stop limit order, which locked in a tidy sum. With the bloated P/E, and certain market commentators (including some jackass at Citicorp who seems to have never heard of stop loss orders on high yielding stocks, and Cramer, who certainly has) yacking about overbuilding in the shipping space. So today was backslide day for DSX based on its bad news.

DSX is one of a group of shipping companies that kick off nice high yields, but must be administered in controlled doses to avoid getting paid with your own money. These include NAT, EGLE, FRO, QMAR, and GMR among others.