DryShips Inc (fka DRYS)

[stoxjock]

"On an annual basis, assuming all the vessels we have agreed to acquire have been delivered, that vessels employed in the spot market are fully utilized and earn $16,000 per day for Newcastlemaxes, $12,000 per day for Kamsarmaxes, $10,000 per day for Panamaxes, $18,000 per day for Aframaxes and $30,000 per day for very large crude carriers ("VLCCs") and that the rest of the vessels in the Company's fleet that are employed under time charters earn their respective fixed rate, we expect the Company's fleet will generate EBITDA of approximately $70 million."

Ok. Let's say that DRYS will in fact make $70MM EBITDA per year.. Does anyone have Benchmark for Market cap of shippers based on EBITDA? I heard it is normally 10xREvenues. Conservatively, let's say DRYS Market Cap should be $1.4BB. With future dilution of another 200MM shares + existing 152MM Shares, Total Shares O/S = ~350MM Shares.

PPS with new dilution = 1400/350 = $ 4.00

I hope it gets back to at least $3+ by end of the month. It's a great opportunity to Buy at this point, to double your money!