No. 3 - Come Sail Away

Tuesday, 24 Apr 2007 | 8:21 PM ET

The shipping industry is enjoying a boom the likes of which it hasn't seen since spices were discovered in Asia. While that may be an exaggeration. the ethanol and energy bull markets have sparked a huge surge in shipping demand. How can investors navigate their way to fast money?

Dylan Ratigan explains the shipping space can be divided into three areas. Dry goods, oil and consumer goods

Dry Goods:
Eric Bolling says DryShips (DRYS), Geneco Shipping and Trading (GNK), Excel Maritime Carriers (EXM), Diana Shipping (DSX), Alexander & Baldwin (ALEX) and Eagle Bulk Shipping (EGLE) are the major companies in this space.

The Top Three #3
Greek ships

He adds that ALEX and DRYS are his picks because they’re two great companies “hitting on all cylinders.”

Tim Strazzini says Quintana Maritime (QMAR) is his pick because it’s performing very well.

Consumer Goods:
Jeff Macke says Horizon Lines (HRZ), Danaos Corp. (DAC), Season Crop (SSW) and Aries Maritime Transport (RAMS) are the major companies in this space.

Jeff adds SSW is his favorite name in the space.

Eric says Teekay Shipping (TK), Frontline (FRO), Overseas Shipholding Group (OSG), OMI Corp. (OMM), and General Maritime (GMR) are the major companies in this space.

He calls these names the worst of the batch because there’s so much volatility in oil transport. He adds if investors are interested in this space, remember that the younger the fleet - the more valuable the company.

Guy Adami adds Ship Finance (SFL) has upgraded its fleet. He adds it’s his pick, but only on a dip.

Questions? Comments? fastmoney@cnbc.com

Trader disclosure:
On APR 24, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Strazzini Owns (JBLU), (SNDK), (T)
Bolling Owns (XOM), Gold, Silver, Corn, Natural Gas, Is Short Soybeans

  Price   Change %Change


Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report