Diana Shipping Inc. (NYSE:DSX) is a relatively boring business - they operate a fleet bulk carrier vessels that transport iron ore, coal, grain and other dry cargoes along worldwide shipping routes. However, their stock is a completely different story having risen sharply off of its 2006 lows to its current levels! The company interests many investors because it offers what they call a "chindia" play - that is, an investment that takes advantage of both the Chinese and Indian emerging markets.

Is Diana Shipping an attractive investment? Well, two thirds of the world's goods travel by sea with 40% of that being dry bulk goods, and growth in Chinese and Indian import demand for cement, coal, iron ore, grain and other commodities have helped increase the number of shipments significantly. There are also reports that the company recently added a new ship to its fleet, which is due for delivery in May at a cost of $99 million. The vessel is reportedly going to be chartered out on a five year schedule at $41,000 per day. While the impact on EPS and dividends largely depends on the type of financing used to acquire the ship, many expect that debt financing will enable the company to realize the gains on future earnings. From a valuation standpoint, the company trades with a forward P/E of just 10.61x and margins beating most of its industry competitors. Combined, these factors make DSX a stock that is definitely worth putting on the watchlist!

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