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Interesting article on the Baltic Dry Index for the GND followers

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6 REPLIES 6
stores
Super Contributor
Thanks Werner. I bought some GND for my long term portfolio last week.
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Werner_1
Super Contributor
I really like GND - lol - i always say that - but that article is quite interesting, that guy thinks commodity demand will continue and pick up - this will help GND.
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suki
Super Contributor
so, you saying if i get in now i will never regret it? i.e. longterm
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Not applicable
Just don't be expecting any short term fireworks. GND has very little exposure to shipping spot rates. About 80% of their fleet is contracted out already, at rates marginally better than last year, but at much lower exchange rate. For me, i think hte GND catalysts will be a) rand weakening, which we can immediately gauge, b) a rerating of their forward PE - this seems likely given the increased spot rates, meaning they will be able to negotiate better contracts for next year c) gains in their trading & banking portfolios, which have been performing amazingly in the downturn. These still make up a small portion of their turnover, but the impact is growing. Soon, we might be able to rerate GND on the strength of these divisions, which would be great. By the way, does anyone know what happened to their chrome mine that they talked about in their 2008 results, but that seems to have dissappeared?
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Werner_1
Super Contributor
suki - Skaaptjop's comments are 100% - i think its a very good long term share, but dont expect to make a quick buck, its a long term play and the biggest benefit will only come once the global economy really picks up again - with all these debt crises this could take some time for stability.
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manicks
Regular Contributor
BUY BUY BUY!.. represents excellent value at current price.
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