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camarodan64 (94.88)

DRYSHIPS, TIME TO PULL UP ANCHOR IN THE SHIPPING SECTOR

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5

February 13, 2009 – Comments (9) | RELATED TICKERS: DRYS , NAT , RTP.DL

 Dryship shares have been recently battered, slipping to the $4.75 area in light of the BDI  hovering around 2000 gaining 300% since the Nov 2008 bottom.  Fellow shipper Nordic American Tanker (NYSE: NAT) reported earnings today of $.50 and declared a $.70 dividend /share.The company also said it is considering further acquisitions to increase its presence in the drybulk shipping industry.

 Dryships shares are near the bottom of its current trading range and at oversold levels,  look for the DRYS bounce to happen as share liquidity drys up taking it back to the $7.50 to $10 range.

 "Mark to market asset values in the whole shipping industry most certainly has risen, if not sky rocketed, look for large right ups in the sector" 

 A profitable trade on DRYS can be made if you buy now a set a target sell price of $7.50 

9 Comments – Post Your Own

#1) On February 13, 2009 at 3:04 PM, BradAllenton (31.82) wrote:

Where are you putting your stop loss?

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#2) On February 13, 2009 at 3:22 PM, tkaskmaster (82.12) wrote:

This article is wrong about NAT's dividend.  It's acutally $.87 per share.

 Here is the paragraph from today's release:

Nordic American Tanker Shipping Ltd. ("NAT" or "the Company") today announced its results for the 4th quarter of 2008. Based on its results for the quarter, the Company will pay a dividend of $0.87 per share on or about March 9, 2009 to shareholders of record as of February 25, 2009.  Following this dividend payment, the Company will have paid a dividend for 46 consecutive quarters since the autumn of 1997 when the first three vessels in the Company's fleet were delivered and commenced operations. 

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#3) On February 13, 2009 at 3:25 PM, Rehydrogenated (32.25) wrote:

You talk about DRYS and the shipping sector as if they have a connection. DRYS belongs in the "liar" sector. Or maybe the "artificially inflated" sector.

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#4) On February 13, 2009 at 6:19 PM, goldminingXpert (29.59) wrote:

We learn one key piece about NAT and DRYS from this. NAT is a well-run company.  DRYS is a piece of ****

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#5) On February 13, 2009 at 8:42 PM, nuf2bdangrus (< 20) wrote:

DRYS has simpley become a trading vehicle.  I wouldn't want to hold it overnight.  NAT has this little problem of issuing new shares to raise cash to pay out the dividend.  That's dilutive.

I'll pass on both.

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#6) On February 14, 2009 at 6:48 PM, recarv (< 20) wrote:

I second nuf...DRYS is a trading vehicle.  Not sure about the issuing new shares to pay out the dividend...all pieces of evidence on management say they'd reduce the dividend based on their prudent nature before resulting to said shenanigans - or why not tap their revolving credit line to do the same - if they were being so nefarious.

In their dividend statement - they mention spot prices holding due to " tankers used for storage purposes" - well this is certainly unsustainable long term, so unless someone else sees a catalyst for spot rates in the near term, I say yikes! 

Look for NAT to drop their dividend if things continue to worsten, at which point DRYS will be a very leaky ship to sail in. 

 

 

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#7) On February 15, 2009 at 5:54 AM, camarodan64 (94.88) wrote:

Judging by recent events within the shipping sector and the passing of the US stimulis package #2 along with the Chinese shipping sector stimulius package all Dry bulk shipping stocks look good here.   DRYS should breakout next week as mainstream investors find out about these oversold levels in the shippers.

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#8) On February 16, 2009 at 12:01 AM, anothername2222 (< 20) wrote:

The writer made a gross error  NAT dividend is .87.  He states that it is 70.

The mistake was pointed out several days ago, and still has not been corrected.  It makes me hesitant about thinking of Motley Fool as a credible resource.

  

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#9) On March 18, 2009 at 9:26 PM, camarodan64 (94.88) wrote:

Correction Notification

This article was printed in error by stating that NAT paid out a dividend of $.70 a share.  The arcticle should have stated a divedend payout of $.87 a share for NAT.  I do apologise for this  content error.

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