JJC:    For speculation Friday, okay, speculation Friday... I have drudged up an over-looked IPO that came public just last week and sank like a stone...

It's Britannia Bulk Holdings Inc. (DWT)...

It's one of these dry bulk shipping companies, a group which has made a lot of money for us in the past that rise and fall with the Baltic dry index, which covers the rates they can charge for shipping, and it's pulled back hard... It ruined Britannia Bulk's IPO, but that's okay... You see, because, we didn't recommend it on the IPO. No, we thought it was too high. The IPO priced at $15 a share. But it opened much lower than that, and kept sinking. A real loser for anyone participating in the deal, but a winner for Cramericans who are about to buy it at $12.80. I think the Baltic Dry Index will recover, making DWT a good buy, but only at the right price.

Remember, we like these dry bulk shippers for their dividend yields. You see that Frontline Ltd. (FRO), by the way... I think it's up $1.83 today... This stock is less than a dollar off its 52-week high despite the fact that the market is down almost 20%. These companies pay out huge dividends and Britannia Bulk is no exception. At this price, I think the implied yield, when they declare the dividend will be 8.8%. Remember what you're getting in treasuries. 8.8%, that's better than a sharp Panama ship in the eye.

But it's important to remember that this is a small company and we're going to give you a little bit... Going to give you that little Miranda warning again, okay? It's a small company, a small stock. You can not pay up for it.   Britannia Bulk is a great dividend play with growth right now, but at this price, you can't buy this stock recklessly. If you pay, remember I said $12.80, so let's walk through this... If you pay over $13 you are no longer getting a good deal... And the only reason why you would pay more than $13 is because it was mentioned on this show. If you pay $13.50, you're positively getting ripped off... Because the higher the price you pay, the lower the yield. It will be lower later in the week when people forget that I highlighted it on the show and if you buy it now, you will end up joining the legion of lurking Cramer-haters. Only with those caveats in mind while I tell you about this company, Britannia owns 22 ships, 13 of them are bulk ships, 5 are ocean barges and 4 are tug boats. But 5 of their dry bulk ships, along with all their barges and the tugboats are new idea, new thought on this show, are ice class ships... Meaning they're the only kind of ship capable of sailing in icy conditions, the kind you get during the winter in the Baltic Sea, which just so happens to be Britannia's primary area of operation. Britannia may no longer rule the waves, but they still got that Shackle-like knack for navigating through frozen waters.

DWT does also ships between the Baltic and India, as well as Latin America, as well as between Australia and India and China. It's bulk ships are all smaller size... That's that Panamax, Hanymax and Handy size ships, the smallest ones... But they can get through canals without any trouble. Britannia also charters 45 vessels. About half their shipping volume is, and you ready for this?... What other stocks were up huge today?... Coal. Followed by, what other stocks were up huge today?... Agricultural commodities. And what other stocks were up huge?... Fertilizers. We know all this stuff is in high demand, we see it in the stock prices. Dry bulk ships are how these things get from place to place. All this business supports Britannia's juicy 8.8 yield. But there is also a growth element to this company. It has 6 more ice-class dry bulk ships on order between June 2009 and 2010, which will make DWT more money and allow them to grow its dividend, likely sending its share price well as higher. Much higher?... Conceivably.

Let's talk about why it's IPO was such a failure, you need to know that, and why I think it could make a comeback. There was a quick downturn in the Baltic dry index just when they brought this public... Which tells us, remember, that index tells us what the rates are going to be, what Britannia Bulk can charge. The Chinese government ordered a reduction in iron ore stock piles right at the time when this deal came public, which was the cause of the big pull back in the Baltic Dry Index. That inventory reduction will prove to be temporary... 3 or 4 weeks. This was a short-term hit, not a long-term problem. I believe the Dry Bulk Index could swing up again because of the supply and demand pressures. While 15% of the Bulk order due to be delivered to China will be delayed, commodity demand is still expected to double over the next three years, thanks to China and India. It's possible too, that the volatility in dry bulks over the last couple weeks has been caused by heavy hedge-fund short selling, that's market mechanics. It means the stock are broken, not the companies... They're going to snap back. Now DWT will sway this way and that with that Baltic Index, but I think that the downside, which we care about on Mad Money, is a cap, cap, because as the stock goes down, the dividend protection kicks in. And overall, I expect this stock and the Baltic Dry Index to higher, ultimately.

Remember, the cautions are to watch, especially after the massive decline we've experienced, wait for pull-backs before you buy, especially with a small stock like DWT. You will get plenty of chances to buy this one at a good price, because the Baltic Dry Index can be pretty volatile... Wait for your chance with the stock at $12.80, it's a good deal... Limit orders no higher than $13... If you buy excessively, that price will go higher. If you pay market orders, in other words, you don't tell the broker what limit, you'll be paying too much.

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