$6.40
0.04 (+0.63%)
DryShips, Inc. (DRYS)
CAPS Rating:
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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On May 29, 2009 at 11:30 AM, willmaster01 (99.10) wrote:
My pick is DRYS!!! I know its risky but I'll stand by it for now. This time frame is 6 months.
Recent share issuances 41% of all outstanding shares are shorted.. what happens then those expire!?! They will too.
US $$ goes down. exports increase ships will be needed.
Much more details to be said.
Shares now outstanding 257 million
Shares short 15 million
Average shares per day 40 million
Shorts are an insignificant issue. No short squeeze.
Shipping will return, but Steel has a long way to recover, many plants are shut down for the year.
50% of bulk shipping is Iron Ore and Met Coal, the ingredients in steel making. Only China is ramping up, but their steel sales are sluggish.
The current rate of new ships being launched exceeds the rate of growth in the world demand for the commodities shipped on Bulk . An oversupply in amount of ships creates lousy rates, no growth.
imacq, we've heard the news, hence the low share price.
I agree with your sentiment here. You know sometimes they say the best plays are made when sectors are out of favor, but this one has been out of favor QUITE a while so it is due for a nice bounce. Likewise I think you are correct about the US $. In order to get the economy moving manufacturing, inclusive of commodities, will have to increase and that means that althougth the dollar may remain the dominant currency the government should know that increasing the strength of the dollar is not in our interest at the moment..... So lower dollar, increased exports and the need for shipping. I think your time frams is deffinitely safr, but the pick up in shipping is proably going to start much sooner than that. Perhaps as soon as this quarter due to the fact that any uptick will show improvement.
My interest in DRYS came from its acquisition of Primelead with its ultra deep water drill ships. When the world economy recovers, the dollar will be weak, making the dollar-price of oil quite high. China will probably lead the recovery, and will be aggressive in its pursuit of hydrocarbons. Someone's got to drill these new finds by BP and PBR.
All signals from the trade floor say that PRGN and DRYS are set to go through the roof. Just recently theese shipping companies signed for double (2x!) the shipping rates. I expect $1 increases by options expiration this Friday.