Grand Toys International Limited (NDAQ: GRIN) shares more than tripled today after the company agreed to purchase frisbee-maker Wham-O for $35 million. The toy-maker will pay a cash consideration of $35 million, adjusted for the liabilities of Whom-O, and 100 percent of the shares of its wholly-owned subsidiaries Hua Yang Holdings and Kord Holdings. Grand Toys also said that it would divest the low margin, non-core Hua Yang and Kord manufacturing businesses in order to fully focus on developing the Wham-O brand.

The news comes after a plethora of problems for Grand Toys, who has been struggling with both its own businesses as well as retaining its Nasdaq listing. Shareholders are hoping that the acquisition will help revitalize the company with names like Frisbee, Slip ‘n Slide, Hula Hoop, Morey, Boogie boards, Snow Boogie,and BZ Pro Boards. Grand Toys plans to obtain substantial growth by targeting international markets and driving synergies with its International Playthings subsidiary in the United States.

“The new Board of Directors of Grand Toys, which was assembled in mid-2007, has been focusing on developing a new direction and strategy for Grand Toys to give the company a platform for growth” comments David Howell, CFO of Grand Toys. “We believe the acquisition of Wham-O represents a transformational opportunity for Grand Toys and it will become the key asset around which we will build our business. In addition, the divestiture of the low margin, non- core Hua Yang and Kord manufacturing businesses frees up significant working capital for the company and allows us to reduce substantially our bank debt, creating a much healthier balance sheet.”

So, what does this all mean for shareholders? Well, Grand Toys has decided to take on some additional debt and divest its past businesses in an effort to acquire brands that truly have substantial value as they are recognized worldwide. Investors are hoping that this will be enough to turn the company around and drive higher profits and revenues. Combined, these factors make GRIN a stock worth watching!

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Institutional investors are required to disclose their significant holdings to the Securities and Exchange Commission through a Form 13F filing. One investor that filed today was billionaire activist investor Carl Icahn and his fund Icahn Capital LP’s activity for the period ended December 31, 2007. Although the investor has experienced issues with some of his holdings, he is still a large player in the market that is definitely worth watching given his spectacular annualized returns. So, without further adu, here are his major holdings:

1. Anadarko Petroleum (NYSE: APC) $970.6 million
2. BEA Systems (NDAQ: BEAS) $654.176 million
3. Biogen Idec (NDAQ: BIIB) $469.973 million
4. CSX Corp.(NYSE: CSX) $128.422 million
5. Lear Corp. (NYSE: LEA) $265.424 million
6. Macy’s (NYSE: M) $133.61 million
7. Motorola Inc. (NYSE: MOT) $969.881 million
8. J.C. Penney (NYSE: JCP) $183.274 million
9. Regeneron Pharma (NDAQ: REGN) $60.586 million
10. Temple Inland (NYSE: TIN) $71.9 million
11. Time Warner Cable (NYSE: TWC) $130 million
12. Time Warner Inc. (NYSE: TWX) $213.526 million
13. Unum Group (NYSE: UNM) $95.65 million
14. Williams Cos. Inc. (NYSE: WMB) $173.2 million

Investors can track Carl Icahn’s portfolio via the Schedule 13F filings; activist communications through Schedule 13D filings; and buying and selling through Form 4 filings. These are all filings that can be tracked through SECFilings.com and are definitely worth watching closely!

DryShips Inc. (NDAQ: DRYS) had a spectacular run last year when shipping prices soared for dry bulk shipments. Many investors now believe that the market may see another steep run-up as dry bulk shipping prices have again begun to rise while recent earnings from the sector clearly outperformed. Moreover, consolidation within the sector has helped to drive up the prices of all the players in the market. DryShips is one of the cheapest stocks in the sector that holds great promise - is now a time to buy?

The dry bulk shipping industry’s earnings is dependent on a combination of its spot rates and long-term leases. Spot rates spiked last year when they rose from $80,000 to around $190,000 on soaring demand. The demand leveled off along with the rest of the market, however, during the end of last year and beginning of this year. Now, prices appear to be on the rebound as rates have reached $120,000 so far this year (view chart). This is great news for bulk dry shippers like DryShips who have large fleets of vessels.

DryShips is expecting to earn $9.55 per share in 2007, which means that it is trading at just 8.1x earnings while many other companies in its industry are trading closer to 20x earnings. Even better, the company’s forecasted $18.18 per share earnings in 2008 mean that it is trading at just 4.2x forward earnings for this year! DryShips stock has risen around 35% since January of this year while it has only revised its estimates upwards. The company remains one of the cheapest stocks in the industry despite its recent moves upward.

There is also a catalyst at work within the industry. Greek brybulk shipper Excel Maritime Carries, Ltd. (EXM) announced its plan to buy Quintana Maritime Limited (QMAR) in January, which fueled M&A rumors across the industry. The chairman and controlling shareholder of Excel also predicted further consolidation looming in the sector as valuations remain low and future expectations remain high. DryShips remains one of the largest, but cheapest, companies in the industry meaning that it could become a target for a merger. Again, this is good news for the company that could be the catalyst needed to jump its share price.

In the end, the dry bulk shipping industry slowed down after its spectacular rise in 2007, but many of the fundamental factors behind the rise are still in place. Emerging markets and China are still growing while the economies outside of the U.S. appear to be making headway. DryShips remains one of the best performing and cheapest stocks in the industry that may be worth a second look. Combined, these factors make DRYS a stock worth watching over the next few months!

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Star Bulk Carriers Corp. (SBLK)