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Bet he waits and then sells it all the way down to $1.40 where he started killing us in the meantime. Hope I am wrong but ....
Reverse proof? Only in this release from a couple weeks ago.
http://finance.yahoo.com/news/dryships-inc-announces-exercise-preferred-140000811.html
My opinion is shorters bailing out before the reverse. No telling on how much they reduce the float but even 1 for 100 only takes it to $20. Then there is that whole thing about revenue and if there is any... could be interesting for a while around here.
That's an interesting point. If they indeed do make .05 it'll surely not stay at this range. That'd be 1x earning which is crazy. Of course what about this has made any sense... not a lot.
Thx, thought so... which is an interesting play by itself. Like to see those books....if the purchases are legit, cash, share swaps, etc....time will tell. .? Is will it be $1 or .01cent.?
I dont know at this point... I followed this back in the late 00s when it was at levels we would dream of to watch it crash down to .22 cents? Did well from $3 to $4, then was chipped away at when it went from $$3to $2, and dabbled on dips etc until it hit the .80s
Been waiting for it to stop sliding but all I see is assets being sold, market conditions not favorable and unfortunately another 'victim' of China's voodoo.
It is my hope he (GE,George) is rightsizing this beast so it's again profitable and I would welcome a share reduction. The float is ridiculous as are the authorized shares.
When this comes off Nasdaq its game over for a while until or unless it can show profits. a penny here and there are not going to cut it. I HOPE he's not positioning himself to be 'private' if they had to file BK. As you've stated, GE has a big share count so it'd hurt him too, unless he "owns" all the assets, then it's just a matter of changing names and all the debt goes the way of the shareholder. To the bottom.
Again, Hope I am wrong, but its hard to keep watching it just get killed week after week.
I probably will not jump back in until it's back over $1 with some solid earnings. Sadly, at .40 that's WAY to close to .0 for me IE bankrupt. GE has a big interest which is one thing I factor as he'd lose a lot too but sonofa..... Seems like a zillion years ago I was ecstatic to go from $3 to $4 and then the slide to this abomination. Hope it turns around soon, but it's hard to say when. I'm with you R2.. hard to remain 'faithful' as it slips .10 everytime you turn around. Sigh...
I would think they would be doing anything they can to get that sucker above $1 to keep from being delisted by Nasdaq. Anyone recall when that could happen? I know there was a period of time after they had been given notice. thx
Agreed, excellent summary and for the first time in a while, I am starting to feel good about all things Drys.. GLTA.
Uh.. that sounds a lot like the US these days too.. yikes, I hope our next president pays close attention to the ridiculousness here or we could be looking at this situation.. at that point I want to be in all cash so I can short everything. lol
Admittedly I was hoping for a bigger dip but it didnt happen...thats a solid sign in my opinion..."safe money" if there is such a thing.
Looking good this week...
$37 price target today... that's promising news.
Nice consolidation.
Hopefully my question is not redundant but I have to wonder if they are selling these assets how does that affect earnings going forward? Are these negative assets that have been draining earnings or are these positive earnings that will show as lower earnings?
Additionally if these assets go away, does it not hurt the ability of DRYS to get any loans, refinance, etc going forward?
Just curious if this has already been considered or a possible reason for the continuation of stock prices near or at 52 week lows?
My thought is if they can pay the loan early due end of year it'll alleviate selling pressure that is considering the end of the year to be the achilles heel for DRYS. If they do not get it paid off, it's my guess that WILL be it, they'll call the note and game over. It looks like a lot is being done to avoid that, which is good and may prove worthwhile as we progress toward that December deadline.
The outstanding item in the back of my mind is that registration to sell shares, what in the world is the plan for that and why would any institutional investor hold onto this (or us) if they plan to dilute even more?
They officially have me concerned that this could be dead money for a number of years.
Thoughts?
Great article. Thanks for sharing this.
Oh good! Thanks netman
Been thinking we may have something to keep an eye on. When will be the 30th day under $1 trading? At that time Nasdaq will notify Drys they need to get the price up above $1 or they will be moved to the OTC 30 days later. Hopefully we wont see that but its another thorn in our sides....
Sadly I am still long but am beginning to wonder if the market is speculating this along with Greece will continue to suffer going through 2015?
In DEC we were all thrilled to see 'positive' earnings and although things did not drop through the floor there was not a catalyst to push things higher this quarter. I "almost" pulled the trigger when it hit $1.06, bummed I didnt and now just get the feeling we are going to be in for more pain, possibly down to the .60's before we get enough news or spin to move this up where it needs to be.
The dilution of last year will start or 'could' in January and that is a BIG target timeframe for me personally. Just beginning to feel pessimistic about this and a reason to not bail on the next rally...
Question will it bring any money in pps? Seems stuck in an ugly rut....
Nice Zacks article..
http://finance.yahoo.com/news/dryships-inc-drys-analyst-report-120012810.html
Summary:
DryShips performed impressively in the third-quarter of 2014 reporting higher than expected revenues and earnings. All the three reporting segments of the company performed strongly. The company's third-quarter adjusted earnings of $0.09 per share handily beat the Zacks Consensus estimate of $0.04. Earnings also compared favorably to a loss of $0.07 incurred in the year-ago quarter. To add to this, strong revenue growth, several contract wins and improving spot fleet capacity days are likely to act as tailwinds for DryShips, moving ahead. Moreover, reduced oil prices should act as a strong catalyst for the company. In view of these positives, we upgrade the stock to Outperform from Neutral.
Overview:
DryShips Inc. (DRYS) is a global shipping company that specializes in carrying drybulk commodities and drilling rigs. Headquartered in Athens, Greece, DryShips was formed in Sep 2004 and completed its initial public offering (IPO) in Feb 2005. The company's drybulk fleet carries several drybulk products including coal, iron ore, grains, bauxite, phosphate, fertilizers and steel products. Through its three subsidiaries, DryShips owns and operates a fleet of 42 drybulk vessels including 12 Capesize, 28 Panamax, and 2 Supramax. Additionally, the company also owns 2 ultra-deepwater semi-submersible drilling rigs and 9 ultra-deepwater newbuilding drillships. The company also owns 10 oil tankers. The vessels are employed primarily in the time charter market, under period time charters, in drybulk carrier pools, and on bareboat charters.
The international shipping industry transports around 90% of world trade and is considered the life line of the global economy. Excluding shipping, and international trade, the bulk movement of raw materials, and the import/export of food and manufactured goods would be impossible. The ships are technically sophisticated, having high-value assets, and the operations of merchant ships generate an estimated annual income of over $380 billion in freight rates. The drybulk shipping industry is highly fragmented, distributed among approximately 1,500 independent drybulk carrier owners. DryShips competes for charters on the basis of price, vessel location, size, age, and condition of the vessel, as well as on its reputation as an owner and operator.
DryShips, Inc. (DRYS): Read the Full Research Report
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days
If i read it right, they sold the $1.50 options at .48 insteadof .50. Im not an options expert but that places the bet the shares would be @1.50 not .48, that was the option price.
It was an options alert, bid was .50, sold for .48. Drys June $1.50 puts if I read it correctly.
Nice bit of positive from Zacks.com (Strong buy on Drys).
Knightsbridge Shipping (VLCCF) in Focus: Stock Tumbles 16.4% - Tale of the Tape
8:50a ET January 12, 2015 (Zacks.com) Print
Knightsbridge Shipping Limited (VLCCF) saw a big move last session, as the company’s shares fell by over 16% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This stock, trading at a volatile range of $3.76–$5.49 in the past one-month time frame, showed a sharp decline on Friday at $4.59.
This slump shouldn’t be too much of a surprise to investors, as the current year loss consensus estimate for this company in the shipping industry has widened over the last 30 days. This suggests there may be more trouble down the road. So make sure to keep an eye on this stock going forward to see if this recent slump will continue, as the earnings picture definitely suggests that this might be the case.
VLCCF currently has a Zacks Rank #5 (Strong Sell) while its Earnings ESP is 0.00%.
A better-ranked stock in the transport shipping sector is DryShips, Inc. (DRYS), which currently carries a Zacks Rank #1 (Strong Buy).
Huh... http://finance.yahoo.com/news/3-companies-watch-greek-elections-182907189.html
January will be a busy month in Greece, where snap elections are set to take place on January 29.
The small Eurozone nation has had its share of financial issues throughout the bloc's crisis, but a new bailout program and structural reforms helped get the economy back on track and improved investor confidence.
However, this month's elections do represent a risk for publicly-traded companies based in Greece.
When current Prime Minister Antonis Samaras' candidate for head of state failed to gain the parliamentary votes needed in order to move the party forward, many began to worry that the January elections could put the leftist Syriza party in power.
The party, which has been leading in the polls, has vowed to abandon the nation's bailout program early, which some say could lead to the country's eventual exit from the Eurozone.
Political instability to that degree may have a negative impact on the nation's already struggling companies.
A Few Names To Watch
Shipping companies Dryships Inc. (NASDAQ: DRYS) and Costamare Inc (NYSE: CMRE) could feel the impact of January's upcoming vote, as the already-declining shipping industry has taken a toll on their balance sheets.
While Costamare made it through Greece's financial troubles relatively unscathed, Dryships was recently forced to restructure some of its debt in order to cover a $700 million funding gap, leaving many to worry how the company will finance its operations in the coming year.
Still, perhaps the biggest loser in Greece's political trouble is the National Bank of Greece (NYSE:NBG), as uncertainty has caused investors to lose confidence in the nation's financial recovery.
National Bank of Greece shares have lost more than 65 percent over the past year, falling nearly 10 percent when the snap elections were announced.
Image credit: Klearchos Kapoutsis, Flickr
always appreciate a second, third, fourth, 15th perspective! This one's been wild. Good luck and Happy New Year!
My perception of positives for 2015.
1. 5% notes paid, not an issue for next 2 years.
2. CEO has over 50million shares @ a buy in of $1.40
3. Low oil $ should spur economic growth worldwide and consumption.
4. Rising interest rates? If other countries also increase rates, cost to build new ships would be higher, thus pressuring owners until recovery is complete in shipping. (this one is a wildcard...)
5. Bottomed at .76 and has been increasing steadily.
6. If if if, oil has stabilized or rises, ORIG will go up and bring DRYS with it.
7. Consecutive positive earnings (?). 1 down..
8. 2015 IPO for Ocean RIG. http://247wallst.com/energy-business/2014/10/15/ocean-rig-partners-files-for-ipo-from-dryships/
Negatives:
1. Shipping rates need to increase steadily.
2. Oil needs to stay stable or increase for ORIG
3. China 'slowdown' could be negative, but possibly priced in already.
Likely more negatives I'm missing but off the top of my head that's my reason for feeling good about an .80s avg buy in for 2014.
Good luck to us all and Happy New Year!!!
If the ol' saying volume precedes price, than today was a good indication.
27milllion shares, and up .03 after hours to $1.24. Also..
ATHENS, GREECE--(Marketwired - Dec 22, 2014) - DryShips Inc. (NASDAQ: DRYS) (the "Company" or "DryShips") announced today the results of its 2014 Annual General Meeting of Shareholders (the "Meeting").
The following proposals were approved and adopted at the Meeting:
1. the election of Mr. George Economou, Mr. Harry Kerames and Mr. Vassilis Karamitsanis as Class A Directors of the Company to serve until the 2017 Annual General Meeting of Shareholders; and
2. the ratification of the appointment of Ernst & Young (Hellas) Certified Auditors Accountants S.A., as the Company's independent auditors for the fiscal year ending December 31, 2014.
Nice day...
Drys made it under $1 recently
Interesting reading... http://marketrealist.com/2014/11/overview-dryships-fleet/
Not rising as much as I expected....
DRYS up in aftermarket: "We are delighted to have achieved the refinancing of our convertible notes on December 1. Our recent successful equity offering raised $333.7 million in net proceeds for the Company. This equity offering, credit facilities from Nordea Bank and ABN AMRO and the unsecured credit line of $120 million from Ocean Rig covers the $700 million due outstanding.
"Our liquidity position on the shipping side has been positively impacted by the outperforming tanker markets, especially the Suezmax and Aframax segments which continue to perform above expectations for this time of the year. In addition, we expect a boost to our cash reserves from the recent dividend declared by Ocean Rig of which we expect to receive approximately $14.8 million on November 11, as well as from the excess of our financing sources outlined above over the underlying debt repayment. Insofar as the drybulk markets are concerned, the long awaited recovery in freight rates is happening and we believe this may lead to a sustainable recovery in charter rates through 2015. Clearly our view is supported by forward charter rates and asset prices which are holding up resiliently, underscoring the positive market expectations. Dryships has a large amount of spot market exposure and is therefore uniquely positioned to take full advantage of the expected recovery in charter rates.
"Turning to our offshore drilling interests, Ocean Rig continues to execute on its business plan. It has produced another record-breaking quarter of $104.3 million net income mainly as a result of 98.6% fleet-wide utilization. More recently, it has announced contract extensions in Brazil adding another $1.1 billion to its backlog taking its contracted revenue backlog to $5.5 billion over the next few years. We believe that while the market outlook has been less positive in recent weeks, talk of a market downturn is overblown and rates are still at profitable levels as evidenced by our recent fixture. Ocean Rig's modern fleet, strong balance sheet and solid contract backlog, provides it with the foundation to implement its previously announced value creation initiatives which will also have a direct benefit to all its shareholders including Dryships."
Financial Review: 2014 Third Quarter
The Company recorded net income of $16.7 million, or $0.04 basic and diluted earnings per share, for the three-month period ended September 30, 2014, as compared to a net loss of $63.9 million, or $0.17 basic and diluted loss per share, for the three-month period ended September 30, 2013. Adjusted EBITDA(1) was $300.2 million for the third quarter of 2014, as compared to $174.8 million for the same period in 2013.
"We are delighted to have achieved the refinancing of our convertible notes on December 1. Our recent successful equity offering raised $333.7 million in net proceeds for the Company. This equity offering, credit facilities from Nordea Bank and ABN AMRO and the unsecured credit line of $120 million from Ocean Rig covers the $700 million due outstanding.
"Our liquidity position on the shipping side has been positively impacted by the outperforming tanker markets, especially the Suezmax and Aframax segments which continue to perform above expectations for this time of the year. In addition, we expect a boost to our cash reserves from the recent dividend declared by Ocean Rig of which we expect to receive approximately $14.8 million on November 11, as well as from the excess of our financing sources outlined above over the underlying debt repayment. Insofar as the drybulk markets are concerned, the long awaited recovery in freight rates is happening and we believe this may lead to a sustainable recovery in charter rates through 2015. Clearly our view is supported by forward charter rates and asset prices which are holding up resiliently, underscoring the positive market expectations. Dryships has a large amount of spot market exposure and is therefore uniquely positioned to take full advantage of the expected recovery in charter rates.
"Turning to our offshore drilling interests, Ocean Rig continues to execute on its business plan. It has produced another record-breaking quarter of $104.3 million net income mainly as a result of 98.6% fleet-wide utilization. More recently, it has announced contract extensions in Brazil adding another $1.1 billion to its backlog taking its contracted revenue backlog to $5.5 billion over the next few years. We believe that while the market outlook has been less positive in recent weeks, talk of a market downturn is overblown and rates are still at profitable levels as evidenced by our recent fixture. Ocean Rig's modern fleet, strong balance sheet and solid contract backlog, provides it with the foundation to implement its previously announced value creation initiatives which will also have a direct benefit to all its shareholders including Dryships."
Financial Review: 2014 Third Quarter
The Company recorded net income of $16.7 million, or $0.04 basic and diluted earnings per share, for the three-month period ended September 30, 2014, as compared to a net loss of $63.9 million, or $0.17 basic and diluted loss per share, for the three-month period ended September 30, 2013. Adjusted EBITDA(1) was $300.2 million for the third quarter of 2014, as compared to $174.8 million for the same period in 2013.
News said they are expecting revenue of $533million and .05c per share in profit. (Guidance).
Well.... that plus GEs shares are over 20% of the float alone.... nice. Bring on Thursday.....
Reviewing the trades someone is accumulating... 46500 buy at $1.495 , 100000 at $1.50. Could be a 'Get em while we can @ this price.' Kind of week. ( I HOPE!)
Fed announced today as the end of their backing too. Probably squeezing things a bit.... I am salavating waiting for GEs announcement that the Dec 1 bonds are behind them. Game on.
Its probably not helping but the shares are locked for 90 days, GEs are locked until Jan of 2016. I presume before the end of the lock they will be doing something to ensure Georges $80mil investment is secure and quite lucrative.