Aloha PBK - Enjoying time in Hampton Roads area of Virginia this summer. If you get the chance, fish tacos at Watermans's on Virginia Beach are pretty good with a great view.
DRYS remains a high risk roll of the dice. There are 2 very interesting observations to be made though. First off the lenders haven't foreclosed at least not yet. It's been some time since DRYS suspended payments. The other piece to the puzzle is the institutional investor that put $10 mil in the coffers with a 90 day period to exercise the warrants. That is effectively 9/15 to seal that transaction. Considering they are willing to put up another $10 mil, it would seem there is something being worked behind the scenes. Still not clear if any of that is good for investors though. Assuming GE is working on behalf of shareholders and based on history this is probably a stretch, finalizing a restructure of debt could run DRYS pps back above $4.
Profitability is still the bench mark that DRYS must achieve in order to continue in business. Even though the spot rates have significantly improved, DRYS may not be at break even yet. Don't forget there are 3 ships reported as laid up, which is dragging down revenues. The 6 OSR vessels could all be working and generating revenue, but that might not be sufficient either. Unfortunately GE isn't providing any details regarding what is being done to right DRYS and taking all of this into account it comes down to a coin flip whether DRYS moves forward or goes bust. One last consideration - DRYS is on the cusp of getting another delisting notice. That would obviously be drawn out for several months, but it would make the price all the more volital.
Things to consider.
