Dryships Appears to be Drydocked
The surprising news of DRYS and its breach of debt covenants has certainly tanked my CAPS score (over a few days it has wiped out 43 points!!). Am I concerned? Not in the least and in my view if gives a great buying opportunity. I practised international corporate law for over 35 years (in Bermuda; Dubai and Canada) and the one thing that I learned from my practice is that times that on their face appear difficult to the world, represent major opportunities for the dominant shareholders of a company to "play legal games" and get very rich. Think about it. Dryships has been around a very long time. Does anyone seriously think that a major company in the dry bulk shipping world is so stupid as to not see cracks in the superstructure? Give me a break - I may have been born under a mushroom cap but I was NOT created with a finger!! These big guys know exactly what is going on and they are capitalizing with stock options that attract very little attention in these down days plus the very influential and dominant shareholders look like a white knight in shining armour coming to the rescue to offer relief from debt obligations. I am not mentioning any names but take a look at Dryships and figure it out for yourself. A dominant shareholder quickly comes to the party and offers (in exhange for a large number of shares) to release the DRYS from what appears to be an onerous financial obligation. If the shares of DRYS were so worthless (as the market is telling us) then why in hell would a brilliant and dominant shareholder take shares of DRYS in exchange for a release of a very real legal contractual obligation!!! Give me a break and wake up world. This is a major buying opportunity - yes, I have put my money where my mouth is and I will continue to buy DRYS at any level below $15.00. Take a look at the BDI as well over the past 6 weeks. Is it going up or down??!! Hello - is anyone home. You can either be a lemming and jump off the cliff with the rest of the idiots of the investing world or you can use some common sense, study the situation and end up concluding the banks are NOT going to tank one of the largest shipping companies in the world due to a "covenant breach". Not to mention that about 75% of all companies are currently technically in breach of at least one of their loan agreement covenants.