Is There Any Containing Diana Containerships Inc (DCIX)?

The gains Diana Containerships has made over the past six months has boosted it to the top ranks of valuation among its peers, but considering the short-term squalls ahead as well as a dicey global economic picture it needs to circumnavigate, investing in the container ship specialist presents a riskier proposition now than it was last summer.

If TCE rates continue sinking and demand doesn’t pick up even more, we’re likely to see Diana flounder on the shoals of outsized expectations of recovery. Industry watchers aren’t holding out much hope for Europe or the Mediterranean trade routes, the latter of which they anticipate may see volumes fall by as much as 10%. I’d hold off on casting my lot with shippers just yet — regardless of their dividend yields — since chasing yield can be a risky endeavor all its own. But let me know in the comments box below if you think the shipper can make it safely back to port.

The article Is There Any Containing Diana Containerships? originally appeared on and is written by Rich Duprey.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned.

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