I am closing out a tiny position (less than 0.1% exposure) in Excel Maritime Carriers (EXM). I am not at all bullish on the sector, but much like housing I wanted to have exposure to something that reflects Kool Aid. Basically the shipping stocks are a proxy on global growth - which there are other ways to play, in the pure commodities. With a bevy of new ships coming online, plus many unused one sitting stashed in the seas off Singapore there is really not a great case to be made here, unless you are a daytrader. The commodity stocks have reacted far better than the shipping stocks in this latest rally so I am going to try to avoid portfolio bloat and punt this non performer.
I sold the last shares out today in the $6.60s - impact to portfolio immaterial. I also cancelled the limit purchase order at $6.20s I've had out for over a month (fill the gap)
I continue to have about 15 limit purchase orders for other names - hoping to see some of them fill if over the coming months we see some true correction. I like all these potential names far more from a fundamental point of view far more than EXM. This is a solid trading stock - not so much for investing at this point.
Overall strategy, despite being a bear on the real economy (the subsidized economy is another matter) is to buy the dips along with the masses until it stops working; while retaining a hedged approach of varying degree. Only when serious support is breached will I be going more heavily to the dark side. Being anticipatory in this market has killed people - that was my mistake in mid April through late May 2009, so reactionary is ok. Just don't have dogma one way or the other.