Replies to post #48635 on DryShips Inc (fka DRYS)

[RealDutch]

But we already accounted for 100M shares total after the rights offering resulting in $7 book value.

But it seems no one really knows when rights offering will be effective and who qualifies.

Only when you own the stock, obviously. Per a certain (record) date in the future, yet to be announced.

So rethink for a moment, what happens if we trade at $3.50... $4.... $5... and how many sellers and buyers we will have.

Who would want to sell his stock for $5 if he can buy more for 2.75 with a $7 book value?

[naturalborninvestor]

It really is striking. There were only $25 million left of the Kalani deal (after raising $700 million in total). Then GE announces to triple the OS to >100 million shares and the market goes wild. In return for this dilution, we get 49% in Heidmar (another company owned by CEO) of which we don't even know if it is profitable. May just be an easy way for GE to get rid of a deficient business. He is a genius salesman!