DSX: Channeling Sideways

Along with many other stocks in this volatile market, DSX has been trending sideways for the past 2-3 weeks. This offers a great opportunity to make several trades for quick profits. I've found the $11.50 level to act as a support with a resistance at $12. This seems like a small fluctuation but don't look at the dollar amount, look at the % change, this is a 4% swing! If your interested in a longer position, look for DSX to approach the $11.50 level and hold through the years end. This is a fundamentally strong shipping company, in fact I venture to say that this is one of the premier shipping companies in the industry. The management is smart, the debt load is minimal and the interest coverage is extraordinary. Since the dividend was cut the price has dropped dramatically however the Baltic Dry Index is rebounding. Look for DSX to have a strong revival. Also, don't be surprised if DSX beats earnings on the next report. Analysts have become very pessimistic about all shippers and might have over analyzed the situation. Also, by cutting the dividend the company now has greater cash flow to expand either their fleet of ships or, what I would like to see them do, by an acquisition. No matter how you decide to play this trade / investment it is bound to be a good one. ENJOY!