Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I just noticed in the prospectus that GE agreed to be 'locked up' until Jan 1 2016.
"""Lock-up Restricted Period: 90 days*
* Except George Economou who has agreed to a lock-up period ending on January 1, 2016. """
That is very reassuring.
This is interesting...
http://www.sec.gov/Archives/edgar/data/1308858/000119312514381541/d808826dfwp.htm
We know GE bought 80Plus Million shares leaving 170M remaining and they are 'locked' for 90 days according to this Friday filing.
My perspective on this could be a poison pill for any potential take overs buyers. OR a way to seriously dilute this in 90 days with the sale of the remaining shares.
Can they use these shares to finish buying ORIG?
Time of Sale Prospectus:
1. Prospectus dated October 22, 2014 relating to the Shelf Securities
2. The pricing information set forth herein.
Lock-up Restricted Period: 90 days*
Title of Shares to be placed: Common Stock par value $0.01 per share
Number of Shares: 250,000,000
Public Offering Price: $ 1.40 per share
Closing Date: October 29, 2014
Thoughts? ... I wanted to share this as I didnt see it friday.
DryShips is plunging today, but a huge trade is betting that further losses will be limited in the long term.
optionMONSTER systems show that a trader sold 20,000 January 2016 1 strike puts for the bid price of $0.20. This is clearly a new position, as previous open interest in the strike was a mere 107 contracts.
The trader is betting that DRYS will hold above $1 through early 2016. If it does not, the put seller would be on the hook to buy 2 million shares of DRYS for $1. (See our Education section)
DRYS is down 25.75 percent to $1.49 this morning after announcing plans to offer another 250 million shares for $1.40. The dry-bulk shipper hit a 52-week low of $1.32 last week, but it was above $3 a month ago. The recent action has driven its 10-day historical volatility up to 233 percent.
http://finance.yahoo.com/news/long-term-floor-seen-dryships-142553809.html
Well if they already placed the shares and what's done is done, that'd give them a fresh cash injection of $350mil to use toward the bonds. Hopefully they can and will put this to rest.
DryShips Inc. Announces Pricing of 250,000,000 Shares of Common Stock
Athens, Greece, October 24, 2014 – DryShips Inc. (NASDAQ: DRYS) (the “Company” or “DryShips”) announced today that it priced the offering of 250,000,000 shares of its common stock, par value $0.01 per share, at a price of $1.40 per share. The offering is expected to close on October 29, 2014. As part of the offering, George Economou, the Company’s Chairman, President and Chief Executive Officer, has purchased $80 million, or 57,142,857 shares, of common stock in the offering at the public offering price. RS Platou Markets, Inc. and Pareto Securities Inc. are acting as joint lead managers, joint bookrunners and placement agents in the offering. ABN AMRO Securities (USA) LLC is acting as joint lead manager and placement agent. DVB Capital Markets LLC is acting as co-manager and placement agent. RS Platou Markets AS and Pareto Securities AS are acting as placement agents. RS Platou Markets AS and Pareto Securities AS are not U.S. registered broker-dealers and to the extent that this offering is made within the United States, their activities will be effected only to the extent permitted by Rule 15a-6 of the Securities Exchange Act of 1934, as amended. The Company intends to use the net proceeds from the offering to repurchase a portion of its $700.0 million principal amount of indebtedness under the 5.0% Convertible Senior Notes maturing on December 1, 2014.
I'm a little surprised to see it going back up above $1.55.
62million shares in the first 3hrs of trading is incredible...
DRYS development. Either an epic gap down due to the selling of shares or the beginning of a massive lift by closing the gap of the senior notes maturing on Dec 1st.
If he is selling shares to keep from defaulting that's one thing and could kill the stock price from here if it delays past Dec 1st. If the CEO is buying $80 in shares because he knows its going to UP dramatically then here is our chance to load up on the drop tomorrow. Definitely one to watch.
http://finance.yahoo.com/news/dryships-inc-announces-offering-common-201835553.html
So this might be a way for him to buy 40m shares at around $2 to make up the difference? Interesting. If that is the case, that'd be a good sign for sure. Oh the games... lol
realistically whats your take on what that'll do to the share price? If after hours is any indication it's going to hit the crapper tomorrow.
And today there was an announcement after hours that DRYS are selling shares. So much for charts and technicals. Hope this didn't catch anyone else! Maybe a short opportunity now?
And today there was an announcement after hours that DRYS are selling shares. So much for charts and technicals. Hope this didn't catch anyone else! Maybe a short opportunity now?
Link to send DRYS investor relations a note. I'm asking what in the heck?!
http://dryships.irwebpage.com/ir_inquries.html
Wow.. I agree. WTF
Well, the charts indicate its heading up. I entered above this point so hope this is a little shake out for those that bought on the way up from 1.30s.
Hope it didnt fake us out...
How about this epic chart? DRYS... http://stockcharts.com/h-sc/ui?s=DRYS&p=D&b=5&g=0&id=p70981567205
Drys is worth looking at. http://stockcharts.com/h-sc/ui?s=DRYS&p=D&b=5&g=0&id=p70981567205
DRYS worth a look. http://stockcharts.com/h-sc/ui?s=DRYS&p=D&b=5&g=0&id=p70981567205
Baltic Index.. up 12%. Nice. Here is a link to quick check.
BDIY:IND 1,090.00 117.00 12.02%
As of 07:56:58 ET on 10/21/2014.
http://www.bloomberg.com/quote/BDIY:IND
http://www.bloomberg.com/quote/BDIY:IND/chart
Back to $3 then $4 when they get the refi news...
Sadly reminding me of Agfeed from a few years back....hopefully the result is not the same for those that get in. Thanks for the thoughts.
The most frustrating thing is the restructuring and falling price of ORIG. If and when oil stabilizes assuming its early enough to satisfy bond holders this should blast up past $3 to $4 (IMO). But and the big but is if they can get it refinanced? Killin me sitting on the sidelines but without clarity, tough to jump back in. Looked good to see it off the 1.30s but thats close to $1 they way this has been moving.
Well lets hope they get the terms they want..
We have our answer... Ouch
Almost pulled the trigger in the 2.10s, glad I waited and bet you are right on the low. We needed to get the "market correction" out of the way so we can move higher.
Alrighty then..lol. Good article! Thanks
I personally did not take that as a great article. I've been looking for a new entry point but am cautious with a 15% swing, With Dec 1st being so close if the sale of the bonds is successful, game on, if not kind of scary to think game over. Thoughts? Seems to be some support in the market here.. looking for the bottom?
Watching DRYS for the bottom...
So essentially this would do away with the 'doubt' looming over the debt coming due in Dec so they can put it behind them. Not sure why the market is still seeing this as a negative... MMm, where to enter?
Throwing this out there for shits and giggles... Anyone 'think' maybe they are unable to attain the financing? I'm still optimistic but if this is dropping at 8% a day wont be long before it's sub $1.
Naturally they will not tell us until we've capsized and are heading to the bottom but it may be worth discussing... We've all been here a while and being at 52 week lows is disparaging or a tremendous opportunity depending on the perspective.
Other points to argue; with 18million shares traded today, a lot of hands traded shares and it wasn't a 'total' sell off. Appeared to bounce on technicals toward the closing bell.
This helps too: http://www.thestreet.com/story/12881338/1/why-dryships-drys-stock-is-up-today.html?puc=yahoo&cm_ven=YAHOO
Not a street "member" so I cannot get the full report. Overall, looking up finally could be turning some heads for good.
Where is the "LIKE" button. hahaha.. Looking good..
Yep.. well if it's lower when I have some cash free up in the next week, fine.. just an opportunity to add more and reduce my overall price point. hahaha. Bringit. Not seeing any chance this is going 'away' ... Just unloved. ;)
two words... Ug and Lee... Hopefully it's a short / weak hands shakeout before some good earnings that kill it. Seems so counter intuitive that they secure the financing get that behind them and the bottom falls out... something smells funny about it.
Nice little surprise... lets hope it holds and continues.
Excellent consolidation... Nearly regained all of the drop in an hour... by the looks of the bid/ask action, upward trend should continue. ANY additional positive news and that keg is going to blow!.
Nice little plug for ORIG vs its big competition.. read on.
http://www.fool.com/investing/general/2014/06/05/why-investors-should-avoid-transocean-and-2-better.aspx
Why Investors Should Avoid Transocean, and 2 Better Alternatives
By Adam Galas | More Articles
June 5, 2014 | Comments (0)
In this overheated stock market (now in its sixth year of a bull run), value investors are struggling to find places to invest new money. Luckily, the energy sector is one that still has many good values to choose from, and right now the offshore drilling space is one of the most undervalued. This is largely because of recent negative press from Barron's magazine (predicting a long-term decline in oil prices of 25%), as well as negative reports from Barclay's (predicting potential share price declines of 40%), Citigroup, and Morgan Stanley.
The reasons for these concerns? Short-term weakness in offshore drilling day rates for industry leaders such as Transocean (NYSE: RIG ) . This weakness is a result of two things: a slew of new UDW (ultra-deepwater) rigs being delivered in the next two years and energy companies announcing a pullback on their E&P (exploration and production) budgets over the next few years.
However, the long-term outlook for the offshore industry is stronger than ever, due to several key factors:
Global oil demand is expected to increase by 13%-26% through 2035.
Oil prices are expected to gradually increase to $125-$150/barrel during this time.
Conventional, land-based oil production is expected to grow by just 1% CAGR through 2030.
UDW offshore production is expected to increase by 19% CAGR.
Global E&P budgets total $650 billion annually and have grown at 15% CAGR over the last 11 years.
By 2020 a total of 165 more UDW rigs will be needed to meet demand than exist now or are scheduled to be built.
However, just because there is long-term wealth to be made in this industry doesn't mean that investors shouldn't be careful about where they put their money. As I'm about to explain, industry giant Transocean is a far inferior long-term investment to younger, smaller, and UDW pure-plays Pacific Drilling (NYSE: PACD ) and Ocean Rig UDW Inc (NASDAQ: ORIG ) .
What's wrong with Transocean?
During its latest earnings call management revealed that its turnaround plan was working, albeit slowly (utilization rate up 3% to 78% and cost cutting of 13%), but Transocean is facing a gigantic obstacle in the coming two years. Twenty of its UDW contracts are expiring, and its UDW fleet, at 23-years-old, is the second oldest in the industry.
Most of Transocean's UDW fleet is 4th generation rigs, while competitors such as Seadrill and Ocean Rig have mainly 6th and 7th generation rigs.
With its contract backlog shrinking by 12% in the last year (from $29.7 billion at beginning of 2013 to $26.1 billion today) management is placing a lot of its faith in a turnaround in a new entity called "Caledonia offshore." This is the company's effort to sell off its older, obsolete rigs, specifically eight North Atlantic harsh environment rigs that are an average of 30 years old.
After the BP Deepwater Horizon oil spill, these obsolete rigs are likely to fetch very little, and the company has yet to deal with the fact that only 51% of its fleet is contracted through 2015.
Why pure-play UDW is a better choice
The investment thesis for Pacific Drilling and Ocean Rig is simple: growth and dividends.
At just 1.9 years old for Pacific Drilling and 3.1 years old for Ocean Rig, they have two of the most advanced UDW fleets in the world.
This industry-leading technology is why the the company can command fleet average day rates of $563,000 and $575,000 respectively. It's also why they command backlogs of $3.3 billion (for Pacific Drilling, three year backlog growth rate 30% CAGR) and $5 billion (for Ocean Rig, three year backlog growth rate 41%).
The second part of the investment thesis is the fact that both companies have announced plans to become high-yielding income stocks. Pacific Drilling's board is recommending a dividend, beginning Q1 of 2015, representing a 7% yield.
Meanwhile Ocean Rig just announced its first dividend, representing a 4.2% yield.
With strong growth expected going forward -- Pacific Drilling is guiding for EBITDA growth of 52% CAGR through 2015 -- both companies can be expected to enrich long-term investors, both in terms of income and capital gains.
Foolish takeaway
Transocean may be the largest offshore driller in the world, but its legacy assets of aging, obsolete rigs along with its shrinking backlog and huge number of expiring contracts leaves it massively vulnerable to the coming short-term industry weakness. On the other hand, UDW pure-plays Pacific Drilling and Ocean Rig have the two youngest, most up-to-date, and highly sought after fleets in the industry, and their small size means years of tremendous growth ahead. The fact that these two are planning on (or already have instituted) generous dividends points to management's confidence in their ability to execute on their growth plans and just adds one more reason for income investors to take a look at these two rock stars of the offshore drilling industry.
Being back over the 50day moving avg will hopefully help that rally.
Going out on a limb here and saying this is the bottom for this year. With a potential gain of $165mil from this deal alone, the bottom line will improve and likely swing to a profit barring any serious drops in the rates in 2015. Up 6% and with above avg volume, lets roll back to $4. :)
Interesting article from the street...
Why DryShips (DRYS) Stock Is Up Today
BY Keris Alison Lahiff | 06/04/14 - 12:02 PM EDT
NEW YORK (TheStreet) -- DryShips (DRYS_) stock is gaining Wednesday on the announcement its majority-owned subsidiary Ocean Rig had signed a drilling contract for one of its semi-submersible drilling rigs, the Eirik Raude.
The drilling contract agreement is for a minimum six-well program with an approximate 260-day duration. The drilling with be offshore the Falkland Islands in a region with an estimated backlog of around $165 million. The rig is scheduled to commence this contract in the first quarter of 2015.
By midday, shares had spiked 6.1% to $3.08.
Must Read: Warren Buffett's 25 Favorite Stocks
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
-------------------
TheStreet Ratings team rates DRYSHIPS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DRYSHIPS INC (DRYS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
?The revenue growth greatly exceeded the industry average of 5.5%. Since the same quarter one year prior, revenues rose by 43.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
?Powered by its strong earnings growth of 73.33% and other important driving factors, this stock has surged by 62.96% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
?The gross profit margin for DRYSHIPS INC is rather high; currently it is at 54.38%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -7.55% is in-line with the industry average.
?Net operating cash flow has significantly decreased to $35.42 million or 66.68% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
?The debt-to-equity ratio is very high at 2.25 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, DRYS has a quick ratio of 0.52, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
Thus why I added in the $2.90s before the dividend. Think the bad quarter was priced in at $3 unless there is something they are hiding. Could be fun from here on up... er, out.