This is in continuation to my last post about the Indian PSU’s. This one’s about shipping. Yes SCI is also one of the candidates lined up for disinvestment!
The Shipping Corporation of
Starting out as a marginal Liner shipping company with just 19 vessels, the SCI today has metamorphosed into a giant conglomerate owning 76 ships of 5.1 million DWT with substantial interests in almost all segments of the shipping trade. In addition, SCI mans / manages 60 vessels of 0.2 million tonnes DWT.
The SCI is a profitable commercial venture of Government of India and has an excellent track record of earning profits since its inception and has also been accorded the coveted status of a “Navratna” and has a market capitalization of 7454 crores!
Take a look at the chart below of the Baltic Dry Index. It’s showing some promise and signaling a reversal in shipping and increased economic activity!
And now to the technical picture where it matters the most. Below is the weekly chart which shows that SCI has broken out of 150/155 resistance and now is looking to target 200 above. With things pretty overbought and negative divergences on the indicators one does get a lil cautious. Plus the price has also drifted far away from the nearest MA; the 20 periods!
I am personally interested in this one, but my chart says BUY only when it comes down to retest the breakout levels or reverts to the 20 periods MA! That way I would be buying value. I guess I’ll pass this one for now, but aggressive buyers can get in now and ride the disinvestment buzz. For investors it’s a safe stock and can be accumulated in tranches …no hanky panky in this company!
By the way shipping as a sector also has made very smart moves, start looking around, you never know when you run into a nice bargain!!!
any Idea about mercator lines?
ReplyDeleteits in the same shipping sector
andas per you "Dry bulk market enters 2010 on positive note"
i think mercator line is having more dry bulk carrier and VLCC then SCI.