This from TFN’s Andrew Snyder:

The two-day rally started yesterday when DryShips (NASDAQ:DRYS) announced it reached a deal to restructure two of its loans. Shares jumped from $5 to $6 yesterday, and up to and over the $7 mark today.

This is great news for an industry that has been reeling in pain after the collapse of the global credit market. After years of expansion in a dire effort to keep up with exploding global demand, the industry is laden with debt.

Ships ain’t cheap

With a bit of light at the end of the credit tunnel, paying for all those new ships may not mean selling them at bargain basement prices, especially now that it looks like the rates shippers charge may be on the rise.

The closely monitored Baltic Dry Index made its biggest one-day move since this mess started last fall. Top rates hit four-month highs of $22,000 and are expected to climb as high as $30,000 in the coming weeks, thanks to increased demand from the Chinese steel industry.

So who are the winners and how do you play this news? First, in addition to dry ships take a look at companies like Eagle Bulk Shipping (NASDAQ:EGLE) and Excel Maritime Carriers (NYSE:EXM). Those two are up by 30% and 25%, respectively.

It sounds like a great, wealth-generating turnaround, but only the folks savvy enough to buy at recent lows are counting their profits. After all, shares of Excel hit lows more than 94% off last spring’s high.  There is plenty of more room to climb.

I would treat this sector like any other speculative investment. There are a lot of variables surrounding the shipping industry and almost all of them depend on a growing global economy. Right now, that could be months, if not years away.

But with credit becoming available and shipping rates rising once again, there is hope. At this point, the reward may not have overpowered the significant risk of selected industry bankruptcies, but we are getting much closer. As soon as more news of debt restructuring hits, you should gobble up all the shares your speculative portfolio can handle.

There is a good chance we are witnessing a strong turnaround in the indicative sector.

Source: The shipping industry stays afloat

Sure, we could give you the typical facts. You know China will be the largest economy in so many years. The Chinese middle class is growing at such and such a rate. We could fill hundreds of pages with this information. But you don’t need us to go through that.

No, instead of spewing out these facts, we are going to let you in on one very overlooked aspect that Wall Street has been dying to get in on, but can’t. Today, you can beat Wall Street to it… And it can’t do anything about it…

Sometimes Wall Street Does Get It Right

As you know, China is growing in every way. Investors have been jumping into just about every industry they can think of.

Just look at the Chinese steel industry. At the beginning of 1996, monthly steel production in China was around eight million tons. By the start of last year, the country was producing over 38 million tons. China expects to turn out 36% of the world’s steel this year:

It’s pretty obvious that with the mass growth of cities in the country, steel is a great investment. Many investors have made plenty of money on that growth, and many more are still doing so. But now it has become a bit too mainstream for our tastes.

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CEO Spends $4.58 Million on Massive Insider Buy

It could be the greatest tip off of all time. The CEO of a small, fast-growing company dipped into his own wallet to buy $4.58 million of his company’s shares…and not in some secret insider deal…but at the market. Wow! What set off the spending spree? This CEO’s company is in a brand new federally funded sector…one that didn’t exist seven years ago. Huge amounts of dollars are flowing in. And get this: He paid $15 a share, but the recent market swoon means you could pay a little as $12.50. This is a pure double up-situation. Find out more now.

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Another industry that has done quite well in China is automobile manufacturing. As more and more people travel between home and work in China, the demand for personal transportation is going through the roof. China is now producing over eight million cars per year:

Even though the steel and automobile industries should continue to grow, it’s too late to get in now. Wall Street already knows about these industries. Sure, you may find a couple of 50% winners. But we are looking for the huge gains that only penny stocks can deliver.

Today, we have one growing opportunity that, so far, isn’t exploited…health care.