3 Fundamentally Shipshape Stocks

For those who are betting on a sustained global economic recovery, there may be no better place to park money today than the transports, particularly the shippers. Shipping stocks have performed extraordinarily well against the broad market since they bottomed in mid-November, 2008. Investors who want to gain exposure to the shipping industry via an ETF can do so by buying Claymore Shipping ETF (NYSE:SEA). Though that fund is a story unto itself - as we'll see below. Some shippers have more than just past performance going for them, however. We'll look at a trio that's posting some compelling current fundamentals to consider. IN PICTURES: Top 6 Uses For Bonds

Greek Shipping Profits
Paragon Shipping, Inc. (NYSE:PRGN) is a relative newcomer to the shipping business. With just over two month's trading under its belt, the stock has posted losses approaching 16% - more or less in line with the sector. At the same time, the company's shares offer an attractive 5.1% annual yield and trade with a price/earnings ratio of just 2.98. Moreover, the stock changes hands at less than half the breakup value of the company. Price to book for PRGN is a mere 0.44.

Paragon is based in Greece, manages a fleet of eleven dry bulk carriers and has a market cap of roughly $200 million.

The aforementioned Claymore Shipping ETF was heavily weighted in Greek shipping stocks when it was purchased by investment management firm Guggenheim in late 2009. But the fund was forced to close for roughly two months for technical reasons when a quorum of 50% of its holders failed to vote during the allotted time period. SEA recently reopened last week with the same ticker.

Don't be Short this Bermuda Beauty
Teekay Tankers Ltd. (NYSE:TNK) is a Bermuda based global transporter of crude oil. Year-to-date, the company's shares are up a whopping 43% and come with an annual dividend of 12.1%. The stock trades with a multiple of just 8.7 times last year's earnings.

International Shipholding Corporation (NYSE:ISH), based in Mobile, Alabama, pays a 6% annual dividend and trades with a P/E of 4.05 and a P/B of just 0.72. In the last year, ISH shares are up 4%.

The Wrap
The shippers have been beaten down recently and are now offering hefty yields and attractive value readings. For those who believe in an ongoing economic expansion but can't decide which company to buy, the recently renewed shipping ETF may be the easiest decision of all. (For related reading on shipping stocks, take a look at The Baltic Dry Index: Evaluating An Economic Recovery.)

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