SHIPPING RECOVERY

Hohoho....If Courage Marine can break 22 cents with convincing volume, the next resistance level will be 27 cents. Go! Go! Go! :laugh: :laugh:

Courage Marine: Clinging on to 22.5c, the MFI remains in overbought territory. I would accumulate on weakness. Courage Marine\'s strong fundamentals and the improving Asian economies bode well for the company\'s fortunes in the near term.

Courage Marine bought an old ship and sold it to a demolition yard in a matter of months, making US$400K. Courage Marine is different from other shipping companies in that its fleet comprises old ships - just like old cars in a rental fleet. The ROI is fantastic. DMG & Partner\'s thoughts: Courage Marine’s strategy of milking the last drop from the old vessels (usually >25 years old) has allowed the ship charterer to weather the storm relatively well compared to many others in the shipping industry which has seen sky-high purchase prices for new vessels during the peak in 2006-2008. Credits to Courage Marine for remaining prudent and sticking with its strategy of purchasing old fleet for chartering instead of purchasing brand new vessels during the booming years. Now, it seems like Courage Marine is not only able to benefit from the voracious appetite of China for foreign resources but also the increasing steel price. We do not currently have a rating on this counter.

Closed at 20.5c and I managed to get part of my overnight buy queue filled. In the buy queue again tomorrow. I am also in the queue to buy at 20c. Uptrend is still intact although weakened. The MACD is pulling away downwards from the signal line. The weakness would probably continue. I would draw attention to the volume. It is shrinking with the weakening price. A low volume pullback. Fundamentally, this is still one of the stronger shipping companies listed in Singapore.

Got my shares today at 20.5c and 20c. MFI declining towards 50%. OBV declining. MACD moving towards zero and would probably go under. The best case scenario, technically, for this counter now is some sideway movement for some time to come, it would seem. What is left for me to do now is the easy part: hold. Of course, I might buy more on any further weakness.

The BDI has exceeded 3,400 yesterday. Nice. Courage Marine sank below support yesterday and closed at 19c despite this fundamentally positive development. If it continues to decline in price to approximate 17.5c, I would be sorely tempted to add to my position. A possible triple bottom in the making then?