For all intents and purposes, DRYS will have 104 million outstanding by 10/3 and another $100 million in NAV. Between that and Heidmar that is an additional $200 million in NAV in 6 weeks that hasn't found its way into the stocks valuation. There seems to be a lot of headroom from the close yesterday and NAV/share. When financials are release for 3Q there will be a much more clear understanding of the accretion from all of the new vessels. Throw into the mix improving spot rates, especially so from the effects from the hurricanes, and DRYS might just post a few surprises down the road.

EH - I don't think you are looking at this quite right. DRYS has roughly 25% debt today. GE is planning on raising more debt through commercial financing. When it gets to 50/50 the ratio will be closer to long-term norms for the shipping industry. Assuming $100 million is paid out of the revolver in a few weeks, DRYS will sit at around $137 million total debt. That will allow another $250 - $350 million or so of additional financing to be done. That's a lot of ships to buy yet.

EH - I don't disagree that GE is in this for himself and cannot be trusted. However, everything the man has stated in his filings is exactly what has been done. He is on record saying the next "phase" of rebuilding DRYS is to better utilize debt and bring that ratio up to 50/50 debt equity. A lot depends on where spot rates go, of course. Rates have improved over the past year and are at roughly twice where they were last year. BDI is up again today and is just under 1300. The hurricanes are bad news for everyone except shipping. Rates will move higher as a result, which bodes really well for the remainder of 3Q and 4Q.

My point, I suppose, is that DRYS without any new surprises is headed higher.

EH - steady and known revenues. Yep. You bet. The 4 VLGC's will provide $42+ million in annual revenues. That's roughly 55% of the total revenue number GE has been using. The ebitda number could make DRYS worth $1.5 billion in market value and that would exclude any revenues from all of the other ships.

Flipping seems to work for you, but I am looking at the longer-term picture and it is strikingly different than DRYS past several years.

VLGC delivered 2 weeks early and brings $30k/day charter rate.

6k out - DRYS announces delivery of second VLGC!!!!

https://www.sec.gov/Archives/edgar/data/1308858/000091957417006622/d7637217_6-k.htm

BDI is up again today. Spot rates historically move up 3Q and 4Q. The hurricanes will move it higher still.

Someone is scooping shares up in pre-market. 128k traded; current pps $2.10

Spartan - It is the last part of that I find most interesting: Unless the offering is extended. Seems to me GE may not want the additional shares and could simply extend the timeframe for shareholders to exercise their rights. Hard to know where this will go. My assumption at this point though is that come 10/3 there will be a total of 104 million shares outstanding. 36 of those will be unregistered and not in the float. With another VLGC on the way and $100 million more in NAV, and improved 3Q revenues, DRYS will be moving up quickly by then.

HC - It is being set up as wholly owned unit of FASC.

Seems more likely associated with geopolitics: NOKO and nukes.

$245 million in projects that should close this month. Each of those will yield multiple machine sales. Now I will be the first to say nothing happens until it happens. However, these seem to be on track.

Thanks, but it doesn't explain today.

so what is pushing the pps down? There are no more new shares in the float. Is this MM activity via naked shorting?

Look at it from his perspective. GE is down $30 million.

There is much more than that even in the tweets. Follow some of the links around the various sites. Much more to know.

Sam - I wonder what new things could be found doing a Google search with "KDS Micronex"?

TJ - Probably so. My guess is we won't hear much until DRYS takes deliver of the next VLGC sometime this month. DRYS fleet deployment page shows that as 9/22.

GE has already stated he wants DRYS to be at 50% debt/equity. My assumption is he will be moving money out of the revolver to "pay" for the shares he picks up the first of October. That will, of course, reduce debt and allow DRYS to negotiate conventional loans for the fleet.

Current float 31.5 million:

67,911,072 Common Shares issued and outstanding as of September 1, 2017.

36,363,636 shares owned by GE

Here is GEs latest SC 13d: https://www.sec.gov/Archives/edgar/data/1308557/000091957417006592/d7628587_13-d.htm

2Q wasn't expected to be much and was similar to other dry bulk shippers. I did find the lack of forward guidance disappointing. It wasn't just the lack of dry bulk future revenues, but what of the tankers and Heidmar? What is DRYS plans for the 6 now laid up OSVR ships? That is at least $75 million floating on a mooring not adding anything to the bottom line but costs.

There are a number of key questions that need to be answered. The macro view of shipping is looking better though. Fewer ships being delivered at this point (<1% 2017 growth) along with a generally stable 2% to 2.5% worldwide GDP is creating the upswing in the shipping cycle. Spot rates could be significantly higher next year. I originally was forecasting that to take place this year basing that on the ballast water system upgrades. That was pushed back 2 years and owners now have more time to make the decision to either upgrade or scrap. Increasing demand will move rates up and keep those ships in play longer now. The only offset will be if ship orders stay low for the next few years.

Regardless of who ends up owning shares by 10/2, DRYS will have an additional $100 million in NAV. Per share NAV will be well above $6. 3Q revenues are running higher and 4Q will be higher still where it will include the full revenue stream from 2+ VLGCs.

A lot was made over the weekend about old news. Perhaps time to focus on today for a while.

G - thanks for the 12 1/2 year old article.

EH - you will have to explain that one. ORIG will move forward with the debt holders and there is a lot of debt. I don't see any play for DRYS/GE. If you do, please explain. tia

That does seem to be the big question. It seems to me that anyone buying now would be doing so for the future prospects of DRYS. The NAV based on share count after 10/2 is $7.87. Expected future revenues are all positive. So it strikes me the reason to buy would have less to do with where any class of shareholders bought in. For instance, many bought at the bottom around $1. That fact doesn't seem to weigh heavily on anyone buying since then. Buying here or higher should be based on whether there is the likelihood of the shares having a higher future value.

RH - I agree with your scenario. Where I disagree is that this is a done deal. Either shareholders by shares via the rights offering or GE will. As far as I can tell, DRYS will have ~104 million share outstanding by 10/2. 68 million will be in the float.

ORIG? Don't see any correlation to DRYS at this point.

Shares purchased through the rights offer do not have a lock up period

A lot of wrong info being provided here. READ the prospectus!!!

Contact your broker and get a rights certificate
Your rights can be exercised or revoked any time prior to 5:00 pm 10/2
You can sell your shares owned as of 8/31 and stil own the rights

https://www.sec.gov/Archives/edgar/data/1308858/000091957417006563/d7452405a_424b-2.htm

EH - that seems like the right numbers for the outstanding by 10/2. One consideration though is GE's shares are not currently registered and can't be traded. Something else that might have an effect on the OS is the fractional number of shares in the offering. It isn't clear to me what the total shares might be.

G - your stopped clock is always right twice a day. Thanks for contributing facts along the way.

This down spike was clearly engineered. Consider how the price suddenly fell ahead of the news being release a couple of minutes later. This seems to be MM manipulation at this point and not much to do with GE per se. What I did find of note was the SEC subpoena wasn't announced in a 6k of its own. Instead it was included in with the ER.

Regardless of all of the noise, there is an underlying business that is improving and will do so in a significant way over the next few months. My guess is GE will be swapping $100 million from the revolver for shares.

A lot of noise and useless speculation going on here. Consider the improvements in TCE, fixed costs, the revolver about to be signifacnatly paid down and restructured, along with new ships coming on line along with spot rate improvements. Sounds like a lot of good things happening at DRYS right now. The SA article this morning provided a bit of detail that actually wasn't terribly biased either way: https://seekingalpha.com/article/4103265-dryships-finally-receives-sec-subpoena?auth_param=12d3ff:1cqfsni:f6f3dab88e71497a093a19151cfef232&uprof=45&dr=1

What I find odd is how many are looking in the rear view and not watching the road. I don't believe anyone was expecting 2Q to be all that great. It more or less mirrors what othe dry shippers had already reported. 3Q will have 14 additional ships in the mix and will be an entirely different story. 4Q will have the benefit of 2 additional VLGCs for nearly the entire quarter with the final ship joining the fleet in December. What was missing today was any update to future revenue projections. Will Heidmar, for instance be accretive in the current quarter?

More details are needed but I wouldn't be making an investment here base on prior quarters' performance. DRYS is a different company today.

Based on what?

This was a gift for anyone looking to get in lower and a last hurrah for shorts.

NAV $7.87 per share as of 8/30. Doesn't include Heidmar or $100 million offering.

Sam - the company that sells the bio-diesel refinery equipment/processes also has a focus on municipal solid waste. They are negotiating a very large deal that I hope works out for them. MSW would be a very large market to tap into and would have a huge benefit to FASC. A lot of things are going on and as always are taking far too long to get done. The deal that should be completed soon has taken the better part of 3 years to get to this point. I will let you know when the deal is cemented and we should hear quickly after that FASC has a multi machine order.

TRCPA - Looking forward to the financials after close today. More to the point, management's discussion should provide a better understanding of future revenues. I believe the previous number for next year, even the next quarters, was low. Any way it's looked at, the pps hasn't caught up to anything even close to realistic - very under valued here.