Brief illustration on how the Baltic Dry Index can be incorporated in trading decisions or strategies.

1. Disclaimer This video/presentation is for illustration only. It should not be construed as a tip or recommendation to buy.

2. The Baltic Dry Index ($BDI)

3. Introduction This presentation takes a brief look at the Baltic Dry Index.

4. What does the Baltic Dry Index measure? This index is one of the purest leading indicators of economic activity. It measures the demand to move raw materials and precursors to production. Consumer spending and other economic indicators are backward looking, meaning they examine what has already occurred. The BDI offers a real time glimpse at global raw material and infrastructure demand.

5. $BDI – Daily Chart

6. What is the Relevance of the BDI Index? The Index can be used to speculate the direction of share prices in shipping companies.

7. How does the index affect shipping companies? When the BDI increases, dry bulk ship owners win. The increase in the index directly increases their margins and revenues. An increase in revenue potentially means an increase in share prices of the shipping companies. The opposite also applies, i.e. A drop in the BDI can signal a fall in the share price of shipping companies.

8. Some US Listed Dry Bulk Shippers DryShips (DRYS) Diana Shipping (DSX) Genco Shipping (GNK) Excel Maritime Carriers (EXM) Eagle Bulk Shipping (EGLE) TBS International (TBSI) Navios Maritime Holdings (NM) Paragon Shipping (PRGN) OceanFreight (OCNF) Frontline (FRO)

9. Let’s take a look at the charts of some shipping companies.

10. Dry Ships Inc (DRYS)

11. Paragon Shipping Inc (PRGN)

12. Conclusion The $BDI chart indicates that their might be a potential rally in shipping stocks. The 2 charts in this presentation, DRYS and PRGN are both bullish. IS THIS A GOOD TIME TO INVEST OR SPECULATE ON SHIPPING STOCKS?

13. http://www.diligenttrader.com