How does DRYS go from over 120 to a penny stock in a matter of two years? What did I miss? Is suddenly the dry shipping industry a thing of the past? What happened?
Tell me about it , this fucking stock realy messed me up .It goes down to 3 , and climes back to 15. That's where i bought it , and then the news , twice in 10 days , and both time after close.
1) You have to be able to acknowledge that the stock was nothing more than a "momentum play" with commodities on the way up and all the way down. 2) The shipping industry will always be around but the behavior of company common stocks is completely decoupled from company "fundamentals".
I don't fucking understand , if DVD rental company can make money with $5 dollars a month , why not DRYS. DRYS 4 dollars , NFLX over 30
Dry bulk shipping company stocks follow the freight index DBI: http://www.bloomberg.com/apps/quote?ticker=bdiy&exch=IND&x=15&y=11 I don't mean to offend you but your question shows that you do not do your homework. Shipping market is very volatile and stock valuation depends on many factors, including freight rates, commodity prices, currency values, supply of new vessels and all sorts of things you cannot even imagine if you never read a good book about it.
Of all the dry bulk shipping companies, DRYS had the greatest exposure to the spot market (Baltic Dry Index), at over 50% I believe. The others had 70% or more of their contracts locked in at the rates during May highs. That, coupled with the fact that DRYS has the worst quick ratio, makes it subject to bankruptcy fears, and these fears are not irrational. I bought DRYS @ 3.48 and bailed when it dropped from the 17's to the 13's on one of those overnight gaps. Glad to have taken the profits before the larger retreat.
Good point. But when time comes to negotiate expiring time charter contracts there will be trouble for the others too unless market recovers substantially.
That time is here already, although they aren't expiring yet, they are just saying renegotiate or don't get paid...
this isn't the first company that george the CEO ran into the ground. just look at how the company is structured with only a handful of employees. if that doesn't raise red flags, i don't know what will.