DryShips Inc (fka DRYS)

[Mr B]

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