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The Company owns and operates fleets. The company's fleet carries various drybulk commodities, including coal, iron ore, and grains, bauxite, phosphate, fertilizers and steel products.
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pytheian (77.20) Submitted: 5/03/08 12:43 PM : Start Price: $69.79 DRYS Score: 17.04
I don't understand why you guys hate this stock.- A recession will not necessarily gut global trade and take day rates with them - if anything, it increases the incentive for countries to trade to their comparative advantage so that they can consume more than they produce. Politicians will take token measure to protect jobs but Obama & Clinton's idea of "reviewing" trade agreements is a sop to unions which they will never, ever follow through on. - Diversifying into deep sea oil service will somewhat insulate them from potential shock of operating short-term contracts- Canny shippng companies will often sell some of their ships when their risks are too high (this is where the Greeks actually have excelled over the years)- Balance sheet is healthy; interest is covered over 18 times- P/E is less than 50% of industry, ROE at >64% is over 2x industry, ROI & ROA ~2x industry- Revenue grew +134% last year and almost 200% annualized Most Recent quarterhttp://seekingalpha.com/article/71262-a-rising-tide-will-rai..."Bulls concede day rates could fall to $90,000, but only a major contraction in global trade would keep them there. Merely mediocre growth should push the stock 25% higher by mid-2009" (Note: shipping rates are extremely volatile - predicting them has been a fools' errand for a long time, but as this line implies, rises in the level of global trade are rarely reversed for long. Also, no one knows for sure what the new increases in capacity will do. They are extrapolating past cycles.)
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LEGMAKER (< 20) Submitted: 5/15/08 5:24 PM
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I am right with you on this one. Seems to have bottomed and still have growth. Asia is really pushing this one. Great call Dryships looks to have more upside.
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FoxyPicker (< 20) Submitted: 7/01/08 11:43 AM
The stock has been slaughtered because of the shorts. I got an email alert close to the bottom from some company promoting its advising service. Supposedly they advised their clients to short, and they did. Many of the shorts jumped off as the stock came up off of the bottom, but they've jumped back on as of today. I expect they'll be back on the naked shorts list very soon.So if we longs are smart, here's what we do about it: SWAP THE DESIGNATION OF YOUR DRYS SHARES FROM MARGIN TO CASH. By doing that, your shares are no longer shortable, and some short somewhere has to cover. I would love to send these folks packing, because this organized attack has cost me a lot of money from my retirement account.Reality check: this company now has a PE under 5! UNDER FIVE! How much cheaper must it go?
TheGarcipian (99.54) Submitted: 7/16/08 3:44 PM
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I'm in agreement with all of you. It seems the panic and the nay-saying has been overdone, even here on TMF's CAPS site. I'm not a fan of the chairman/CEO/ChiefBottleWasher, but I can respect the nature of the economics between countries and the trading that needs to be done currently. Shipping just seems to me to be a natural extension of that economic world view. I expect Diana Shipping (DSX) and Excel Maritime (EXM) to do well too. They're simply in a holding pattern now, but I'm hoping they'll break out after this quarter's numbers are posted.
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