DryShips Inc (fka DRYS)

[Net-Man]

Based on the net earnings reported for the 9 months this year and the current 91 million shares outstanding, DRYS has a 0.175 eps. I am quessing 0.20/share for 4Q, which would bring the full year eps to 0.41 for the full year. That again is based on the 91 million OS. At the pace GE is buying shares back though, I am guessing the OS will be ~82-83 million by year end. That would put the eps at ~0.44 or a PE somewhere around 12x.

Basically DRYS metrics have improved significantly this year. If the US and China wrap up trade soon, the shipping segment should jump significantly over the next few months and continue moving up from there.

Next up on the horizon are 2 significant factors for shipping: BWTS and low sulfur fuel/scrubbers. The combined equipment installations could easily run several million dollars per ship. This will force ships to be scrapped at a faster pace. This will further push shipping rates higher.