Replies to post #51947 on DryShips Inc (fka DRYS)

[tothe]

It was the quote by George Economou that was embedded in link of Giovanni's post that grabbed my attention.
* It applies to some investors but not to the nimble footed Traders.
chart & TA thread post

“It was surreal. When someone asked why he
was doing the deal, here–now, he actually said,
basically, ‘Because Americans are the dumbest
investors around, and there’s lots of liquidity in
this market.’”
https://www.wellingonwallst.com/files/DDF/0704_SB_DRYS_LI_Klein.pdf

Other more pertinent old news:
Embattled DryShips Presses On with 1:7 Reverse Stock Split
(reducing the number of issued and outstanding common shares to approximately 5.2 million shares.)
http://worldmaritimenews.com/archives/225538/embattled-dryships-presses-on-with-reverse-stock-split/
* Note: Traders will be working numbers to figure how much it takes to squeeze the float.

DryShips Wades Deeper into Tanker and Gas Carrier Markets
http://worldmaritimenews.com/archives/216703/dryships-wades-deeper-into-tanker-and-gas-carrier-markets/
* Note: Investors will be looking at this for 24 months until the shit hits the fan. They (Investors) are not dumb, lets see what happens over the next two years and see if the shorts take it down again.


DRYS is a component of the Baltic Dry index
* Again, what the investor sees

http://www.wikinvest.com/index/Baltic_Dry_Index_-_BDI_(BALDRY)
http://www.investmenttools.com/futures/bdi_baltic_dry_index.htm#bdi

Dry Bulk Shipping Stocks
When an investor buys a dry bulk shipping stock, they are effectively buying into the Baltic Dry Index. The amount of exposure depends on the individual stock. Some companies, such as DryShips (DRYS), have most of their ships contracted out at the spot Time Charter Equivalent. This means that the contracts are directly correlated to the daily price of the BDI. Thus, their revenues are directly tied to the index. In times of increasing prices, this set up will yield greater profits for the shipper. Other companies, such as Diana Shipping (DSX), have contracts set at the period Time Charter Equivalent. This means that they enter into a contract, usually 2-5 years in length, which pays a fixed daily rate. This set up provides less volatility, hedges risk against falling BDI rates, and guarantees cash flows.

Because dry bulk ships are expensive, fungible assets, shipping companies often have high asset values, and their stocks tend to show up on value screens. Some argue for comparing the relative values of shipping companies based on their Net Asset Value.[14]