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Last month it was being reported the 2 Panamax are being sold for $18.8 million. That is a good price for them. I wonder what the latest sale will look like? Good to get rid of older shops before the need to be retrofitted for LSI.
I wonder what “the Company expects to realize an aggregate gain on vessels sales compared to the book value of these assets.” means?
BDI continues stair stepping higher. Really good chart since Feb 2016.
DRYS 52 week high: $7.98
GM Sam - Tesla is a very interesting company with a long reach. Glad Reno landed such a big fish.
If the project in Canada ever gets going full steam, I think there is a very bright future ahead for FASC. There needs to be either this project or something real soon in order for FACS to make a come back.
I-Man - I agree that DRYS is currently trading at a discount to NAV. Don't think it is $10 though. Perhaps something closer to $8 based on the 1Q report and possible adjustments for ship valuations. Just the same, as the BDI continues moving up during this part of the cycle DRYS net revenues will also move up. They posted $0.8 million net revenues for the first quarter and that did not include a full quarter for all ships. EBITDA was $12.9 million for the quarter. So one would think that 2Q numbers would be much better.
EH - Interesting thesis. Mind sharing what you are seeing? Seriously interested.
Enjoy your weekend as well.
EH - Don't get to comfortable. My guess is DRYS hits $8 soon.
fwiw - The KDS was never going to make it as a stand alone system. It needs to be part of a larger production process that in itself is profitable. The project and larger system that Brian is working with could be the golden ticket for the KDS and shareholders.
Although "final" documents were signed back in September for that project, there have been delays. Some of those are known. Unfortunately, the current reason for not moving ahead is not known. However, there are a few sources that indicate that closing is imminent. In fact, some work has already been completed on the facility in preparation for the needed equipment. To my knowledge, no equipment has been ordered to date including KDS's.
As TR makes note, this is an important project for FASC. If the project is as successful as what has been conveyed to me, the type of facility could easily become a mainstay operation worldwide. The plant is scalable, but at its minimal processing capacity, 5-6 KDS's are needed. That is to support one production line and multiple lines can be added with the only limiting factor of feed stock supply.
So, if you have any hope of getting your investment back or actually making money on it, you might want to support Brian in his efforts.
52 week high now $8.68 and dropping. In just a few days the chart will begin reflecting the new drys trading pattern without the reverse split influences. Trading above $5, profitable operations, and a rapidly improving shipping market could bring a lot more money into drys over the next few weeks heading into financial reports early in August.
ash111 - I think that is a fair assessment. $8 does seem achievable with the next earnings report.
ash111 - I suppose those numbers are achievable, but suspect it will take some time before DRYS sees a $2 billion valuation. Maybe get to a billion first. ?
EH - Really? Unless some unforeseen event were to happen, I don't see DRYS reversing from here. Sure the day to day stuff, but overall for DRYS and shipping in general there seems to be a very positive, upward trend happening. Low sulfur fuel will be the next catalyst to take more ships off the board. The next 24 months look promising for shipping in general. If the US and China can resolve the trade issues that would create an even better atmosphere for world trade and boost shipping all the more.
So, I guess I don't see that type of retracement to $2.50 or $4.50.
BDI continues moving up as we are now at the start of the annual cycle. It is still far off it's 20 year average with lots of potential upside. PPS is still significantly lower than NAV and no thought yet of any premium to earnings.
Throw into the mix the 52 week high, currently at $10.15, continues to drop. The combination of an improving GEs in DRYS balance sheet, and strong BDI performance and DRYS pps should continue moving up through the end of the year.
I-Man - Apparently I misread your post and thought it was referring to the gas carriers. GE has always shipped to and from China. The Hellenic Shipping News recently published an article that discussed how the Raraka had been sitting at anchor in a Chinese port for over 3 weeks due to the tariff spat. Made me wonder how long soy beans can be kept aboard? Point is , DRYS will ship to anywhere it is legal to do so.
ash111 - that seems a stretch considering DRYS has long term contracts for the VLGC's.
I-Man - Current 52 week is posted as $10.15 and it continues to drop. Within 2 weeks drys current trading price could easily be the new high.
Hard to know, but I am not going to argue the point with you. You have called this all along!!!!
Last day of the quarter. Might prove interesting. BDI cycle should start the annual runnup into the end of the year. DRYS 52 week high coming more in line with current pps. Having a good chart will bring more money into this stock. The stars seem to be aligning for DRYS and the summer could prove to be very good for longs.
Must say it has been fun for the past few weeks.
In less than 3 weeks DRYS will be posting a very new 52 week chart. Assuming the pps continues advancing from here, it will be at the new high. 7/17 and beyond should be a very interesting time for DRYS and its share price.
In 2-3 weeks or less, DRYS will be posting 52 week highs.
Total shares outstanding down another 600k+ to 99,063,448 as of today (6/18). Because of the buyback GE's percent ownership has now risen to 73.1%.
27,253,855 shares owned by the rest of us.
https://www.sec.gov/Archives/edgar/data/1308557/000091957418004277/d7922906_13d-a.htm
DRYS has withdrawn the DGAS spinoff:
https://www.sec.gov/Archives/edgar/data/1725022/000091957418004263/d7922633_rw.htm
As strange as it may seem, within a few weeks the DRYS 12 month chart will look extremely good. In fact, the pps at that time could be at a 12 month high. That will also cause the algorithms to look a bit differently at the stock and should bring new money into the stock. The pps is already defying the normal spring down cycle in shipping. Could be DRYS is being seen in a better light these days.
It does seem to be a very high percent of short interest to the trading shares. Could get interesting real fast. DRYS is still trading well off book value of ships and below net asset value too. Still running into head winds due to GE's past shenanigans.
GE filed a new SC13D/A today listing his change in ownership due to the buyback. His total shares did not increase. However, the total outstanding for DRYS as of 6/8 is now 99,675,370,which is 1.4 million fewer shares since 5/18. DRYS was buying back roughly 100k shares a day.
My guess is there was an upbeat mood at Posidonia leading the brokers to take another look at shipping.
Nearly 6 months since GE filed the prospectus to spin off DGAS. Makes me wonder if the buyback needs to be completed prior to the spin off?
BDI is moving back up. Likely the normal swings for this time of year. A convergence between BDI and DRYS charts will bring on some interesting developments next month going into August.
The panel GE is on will be speaking 1:40 - 2:30 today at Posidonia:
Synopsis:
The Future of Shipping – Risks & Opportunities
A high-level discussion by leading shipowners on the evolution of the shipping industry, the main industry drivers, opportunities and challenges for the shipping industry across the board.
Shipping markets outlook, energy and commodity flows, investment opportunities, access to capital, the impact of technology, operational and regulatory challenges and more.
I wonder how many shares have been bought back to date? I am also watching the 12 month chart getting incrementally better as the RS noise recedes. By July that should look pretty good.
I-Man - I am not expecting any further reverse splits either - at least not in the foreseeable future. GE sold 2 ships to DRYS and received $43 million. It makes me wonder what he has planned for the money and how that might come back negatively for DRYS shareholders.
As for the new ships, the NR didn't provide any details on what revenue was expected from the ships this year. So at this point, as with most of DRYS assets, the new assets immediately become undervalued and for now there isn't any value add in buying the ships. Perhaps GE can help boost the pps next week by providing more detail on where he understands the market is going.
It would be interesting to hear GE's perspective.
I see trains as something in between air freight and ships. Most trains would be limited to roughly 200 containers due to weight and height restrictions. Contrast that against 8,000 containers the average ship moves.
The higher cost of low sulfur fuels will likely be a pass through cost and not add to net profitabilty. There is a larger issue that could benefit all shippers though. The higher cost of the scrubbers needed to remove the sulfur from a ship's exhaust is expensive and could drive a number ships to the scrap yard. Reduced fleet size will benefit the ships left in the fleet due to less competition.Throw in ballast water treatment equipment and the over all costs could significantly change the supply side of the shipping equation.
Look at the cyclicality of the BDI to understand why it is moving lower. The BDI is always lower in June and July only to roar back during the last half of the year.
The same total amount of cash is being paid out by DRYS. That $2.5 million is split over fewer shares due to the buyback and is also the reason for the "increase" in the per share percentage.
My thought is GE is OK with the current shareprice as he continues the buy back. Once that is complete and the non-GE owned share count is around 20 million, he will then complete the DGAS spinoff. Consider what that will mean for anyone that is short. They will essentially be short 2 companies and the associated risks will be extraordinary!
No evidence at all that anything like that is happening. Read the SEC filings.