I recommend closing out positions in Diana Shipping (DSX) and Eagle Bulk Shipping (EGLE) at market. These two stocks have been star performers for us this year and have risen to where their dividend yields are now in the low-7% range. And we have gains of 80% in both stocks since adding them to the Buy List!

I know there have been a couple analyst upgrades lately, but where were these guys six months ago?

One red flag I saw was the 47-cent dividend Eagle Bulk Shipping just declared -- down from the 50-cent payout of prior quarters. Heck, if business is so good, why was there a reduction in the dividend -- and without any comment?

In the past couple of months I stated my price targets for both stocks and we are there. EGLE is at $25 and DSX is trading at $27. At current prices, I view both stocks as priced at or very near full valuation and vulnerable to a pullback that just may provide us another opportunity to own these stocks again down the road.

But for now, let's book these excellent profits and use the cash for some new prospects that hopefully have this same kind of potential.

Take care and I'll see you Friday with the Weekly Update.

Bryan Perry

Editor The 25% Cash Machine