- Danaos has fallen 13.42% yesterday due to the Golden Week holiday and some concerns about the Chinese shortage of power, which can slow the production of export goods.
- I believe that the dip was too deep, which can be explained by market overreaction and impulsive behavior of individual traders.
- Fundamentally, nothing has changed - the demand is still high, and the ports are still difficult to serve. Danaos seems even more attractive against this background.
- Danaos will hit a ton of cash this quarter and the next few ones, no matter how much the short-term rates drop. Therefore, I am going to sell some of my other positions and load up with DAC.
For further details see:
Danaos: Don't Panic, Just Buy The Sudden 13.42%-Dip