I too do not like watching my investment drop every day, however, I do think a rebound is likely. The big question is when it will start and how large it will be.
At some point, DRYS will have raised enough capital and stop selling shares. At that point, the company's tangible book value should be many times the market cap. I would even expect the working capital to exceed the market cap.
I also would not be surprised to see a short squeeze at that point.
I realize there is a lot of distrust and even hatred for the company and it's management. I would probably feel that way too if I were an investor in this much earlier. I am down significantly at this point too, though nowhere near those who bought 12 months or more ago.
All that said, I think one needs to look at this financing as not only novel, but not at all a bad approach. Shipowners have traditionally financed their ships with loans and when the business tanks, they find they cannot generate enough cash to keep the loans current and they end up defaulting. DRYS approach is to finance its ships with equity. Yes, it's discounted equity, but it's not toxic as it's sold at a fixed price below the current market. Yes, the equity provider makes money selling it to retail. Yes, it dilutes the stock. But as long as the average price at which DRYS sells the shares exceeds the current PPS, it's makes the stock attractive.
Now this all hinges on belief that the company can operate its ships profitably. However, not having interest to pay means they can operate at lower cost than their competitors. It also means that for the same revenue, their profits and cash flow are greater.
GLTA.
TA - Over $500 million in toxic funded pump and dumps exposed and growing every day!
