With so many shippers down in the dumper why would you pick the one (DRYS) that has about the worst balance sheet in the group ? I hope you got EBI on the dip ! (I own a few longer dated calls on ESEA and PRGN.)
bigger is not always better, but it's important to me that there's a relatively efficient market for the stock and options- also it's more of a top-down play on dry bulk than a specific attraction to DRYS' business. EBI is now at a 15% discount. I think this will get bought back to the 10% discount it usually has. Here's hoping!
I agree that bulk shippers are cheap - I just dont understand why you'd pick the one with one of the worst balance sheets in the group. The ones I mentioned are smaller then DRYS, so I dont understand your bigger not always better comment. If you're like me and pick stocks by using fundamentals then I think you'd find better choices then DRYS in the shipping group.
the options spreads are very efficient with DRYS, and very wide with ESEA. The May 2.50 calls on ESEA have a spread of .80-1.30. The May 5 calls for DRYS are 1.21-1.28. Also, the stock spreads right now are 4 cents for ESEA, and 1 cent for DRYS. Also, my approach is different for this specific trade, like i said it's more top-down insterad of bottom-up.
Ah well you didn't say options and that does make a difference, but I still think the fundamentals in DRYS are terrible compared to the rest of the group. It took me awhile to get my calls filled at mid points on those thin traded stocks but I got it done - this was like a month ago.
Not a good time to be long on anything now. But good luck but I am not going to help you on either of these two stocks. By the way what is your target for the two?
I was thinking about DRYS, it will end up being a good trade, but really, SO MANY companies are down, there are tons of good trades out there, with better companies
I picked up 10 (longest dated at the time) calls on ESEA when it was at 4$ and PRGN when it was at 5$, but this was back a few weeks ago when the market was looking like it would never stop going up. I was looking for both to move up 1$ and getting out with a nice gain. Both are down alot but I still have time if the market rebounds in the next few months. I wasn't very long so I was just taking some very very small bets on flyers - most of my money was in 2-3x Bear ETFs which is paying off now. With the market down so much this week I'm looking at some low beta stocks for calendar spread plays. MO, BAX and MON are what I'm researching this weekend. I sold some Jun 1$ Puts on ABK on Friday ... lol
whenever i see an idiot recommending a former high flyer that is now selling for under 10 bucks,i automatically think he bought at the high and averaged all the way down.. that is foolish investing my friend and i find it hard to believe you are not under water. if you were making money you would not be posting on a forum looking for re assurance that everything is going to be ok. sorry,you screwed yourself. stop being lazy and buying former high flyers. do some research and learn about technicals and perhaps then you can post on a forum. DRYS is yesrerday's news. what are you going to recommend next, TASR !!!!