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VH - all possibilities. The only thing that matters is what will enrich GE the most? That is the playbook that is being followed. Since he hasn't provided any guidance it makes it impractical for investors to know with any level of confidence or certainty what the next day will bring for DRYS.
DD75 - It does make one wonder what GE's plan is. At the rate he is going there will be 20 million or so shares trading that he doesn't own. At ~$6/share he could easily tender an offer around this price and buy DRYS entirely for $130 million or so. The VLGC sales will net something around $175 million.
Said a little differently - the number of non GE owned shares has decreased by about a third. His shares came out of a lock up period last year and as far as I know are tradable.
My assumption has been that GE has been working with someone to short DRYS down so he can continue to buy shares back at a huge discount to book. The run ups appear to be timed just prior to a new S 13D/A being released and likely due to the pressure coming off so a count can be taken of the remaining shares.
Yes. The total number of shares has decreased by roughly 1.25 million since the last report on 9/19.
His percentage owned has changed not the number of shares owned. The ownership percentage has also increased the same for anyone who has held their shares.
New S 13D/A out. Total shares 93,759,260. GE's percentage of ownership is now 77.2% with 72,421,515 owned shares. 95,009,710 was the reported count on 9/19. 1.25 million shares purchased in 2 weeks.
Wonder how much of the $50 million is left to do the buyback?
Thanks for stopping by Rick. Good to get a heads up when DRYS is about to run.
Maybe. Hard to know what GE has planned. On the one hand, he has made a fortune off DRYS by keeping it publicly traded. On the other, he would be able to easily take the company over with the cash from the VLGC sale and have plenty left.
looking for new on the VLGC sale and how GE plans to use the cash.
RIck is back. Must be time for DRYS pps to start moving.up.
6 months after posting that,well I didn't see that response coming! LOL
Completion of the VLGC sale should be announced sometime in the next 3 weeks. Still no word what the company plans to do with all of the cash. Big deal must be in the works.
I-Man - DRYS swapped it's shares back to ORIG in order to pay off a loan. That happened a few years ago. DRYS has no involvement with ORIG these days.
Don't see the correlation. Oil drilling versus Shipping. ?
Not according to the last 2 SC 13D/A's that he filed. His percentage of ownership has gone up due to the reduced number of shares. He has reported the number of shares he owns as 72,421,515 - no change.
Still wondering what GE is planning to do with all of the cash that will be in DRYS coffers after the VLGC sale. My assumption is they will have between $350-$400 million in cash and debt around $250-$300 million. Book value of the remaining ships maybe around $600 million.
Net per share looks to be ~$7-$8. Today's pps looks like a pretty steep discount. Clearly nothing added to the pps for any level of profit. Although last quarter was slightly better than break even, spot rates have been higher so far this quarter.
mikeinet - thanks. Interesting GE would report the same day I asked the question. https://www.sec.gov/Archives/edgar/data/1308557/000091957418005996/d8059643_13d-a.htm
I wonder how many shares DRYS has bought back? PPS is being held down pretty well.
Has anyone seen anything regarding what GE plans for the cash after the VLGC's are sold?
BDI still moving up. At nearly 4.5 year high. 3Q results should be positive again and better yet. Closing the quarter out with somewhere around $3.50 in cash per share. PPS currently off 35% from recent high of $6.90. Nope. Doesn't make a lot of sense here.
We are coming into the strong part of the annual shipping cycle and would expect to see all shippers move ahead strongly.
All bow to Emptyhead. Called $4.50 last week. Pretty close!
No pre-marker manipulation going on here! LOL. MMS trading as little as 1 share at a time to move the pps a significant percentage. Let the games continue!
With the BDI passing through 1700, wonder if it will get back to the 20 year average around 2100 this year?
As the VLGC deal closes, DRYS will have something around $375 million in cash and equivalents. That is a sizable war chest for GE to have. The BDI just closed above 1700 which is a 4+ year high. Makes me wonder what path GE is on today. Just guessing, but he has become more aligned with China interests lately. Are Valemax drybulk ships built by China with long-term charters to move Brazil iron ore in the future?
This will get fun to watch.
I find it interesting that GE has been aligning DRYS more and more with China related businesses. Wondering if there is a much larger deal about to be announced for long-term carriage of dry bulk goods to China.
The VLGC's were contracted out for very long periods with more or less known rates of return. Selling them, assuming GE did so for a profit, puts cash in DRYS pocket which likely will be used to further leverage the improvements in shipping rates.
There are blocking factors on the horizon. BWTS and LSO are 2 very large factors that all ships will need to deal with in the next 18 months. A pending trade war of any magnitude will cripple the cash flow for many shippers. So whether it is taking over a large amount of capacity in a down cycle or purchasing new dry bulk ships that are fully compliant, selling off the VLGC fleet makes sense.
I don't recall DRYS reporting this quickly after a quarter end. Should be a really good report.
Optimism seems to be returning to DRYS. Someone bought $10 Sept call options today.
DRYS should report positive earnings again. I am more interested to know what the cash is going to be used for.
I-Man- DRYS has reported shares bought back in random ways so far. The numbers have been showing up when they report financial related news.
I wonder if DRYS is still buying shares?
I-Man - LOL. I've seen many people at the Lobster Fest, but no GE. I suppose there's a first for everything.
I-Man - they worked the pps down last quarter ahead of earnings to. Between shorts and MM.'s needing more shares after the run up, it probably makes sense. Earnings should be out within the next 3 weeks and the pps will likely start moving back up.
Looking for more detail from GE on the pending sales, how much cash DRYS will have on hand, and more importantly what is he planning to do with the cash. He has never sat long with cash in his pockets and with that amount on hand he could easily be a large take over under way or a lot of newbuildings to purchased. If he sticks with a 35-40% equity to loan position, there could be $1-1.5 billion in purchases very soon.
Looming LSO requirements are a very good reason to trade off the Panamx fleet and get newer ships that meet the requirement. While others are scrambling, DRYS will be moving ahead and a rapidly rising pps will keep everyone happy.
It does make me wonder how much cash DRYS will have on hand and GE plans. With $500 million there would be a lot of M&A he could do.
Has anyone looked at how much cash DRYS will likely have once all transactions close? It appears they could have something close to $500 million. ?
GE appears to be selling off the Panamax ships a few at a time. My guess is all of the current Panamax ships will be on the block due to the capital needed to upgrade them for LSO which is due to take effect next year. Wonder if they will be replaced with LNG fueled ships?
On 5/7 DRYS reported to have $107 million in cash. Don't know how much of that pile remains today, however, it seems they will have more than $200 million on hand soon enough. Keeping with 30-40% debt to equity, GE could add quite a few new dry bulkers to the fleet. As the BDI continues moving higher ash111's prediction of extremely high annual revenues could easily come to pass.
Still up 500% so doing OK.
Based on the F1 filed for Gas Ships spinoff, it seems their sale should net DRYS something north of $175 million net cash. GE is not going to let that money sit on the sidelines any amount of time. I wonder how many dry bulk ships he has lined up to buy?