DRYS is up big today because it raised 500m by stock offering. My question is DRYS's market cap was less than 500M, and still not much higher than 500M. If someone has 500M to buy diluted DRYS shares, when doesn't just buy the whole company? This question may be stupid for those who knows, sorry.
I cant answer that directly but dependant on how strongly commodities can rally will determine the faith of that entire sector. Its a pure beta play if they start to move and if you are bullish at all on Commodities you need to throw a fuw dollars in that sector that got its butt kicked all last year
DRYS market cap was 1.10 Billion before the offering. Add 500 million and your up to 1.6 Billion. Not a bad price for a stock that sells for around $80 a share during more normal times. Problem is business is slow. Aside from shipping our LOW priced commodities (mainly copper) to China and Dead-Heading back, they don't have much. As far as it being bought outright, By who? Maybe Obama will buy and make the Congress his Board of Directors. If that were to happen look for DRYS to become a true Penny Stock in the most literal of terms. However, given that DRYS is Greek owned, the Obama-nation of Drys is highly unlikely. In more realistic terms, I look for DRYS to pull back a bit early next week (probably Mon.) at which time I'll put some of my money where my mouth is. Commodities are rising, I see DRYS North of $12, maybe $14 before getting sunk again. Any comments from the threaders? I look forward to all. Especially the brainless & sarcastic.
NBOB, I played DRYS in Nov at 3.48/share, then played it again this year at 3.50/share. I like it because of the large gains it makes in a short time. It's nice capital builder for the IRA accounts. I'm curious as to why you are now considering DRYS (big earnings miss, dreadful balance sheet) instead of EXM (great earnings) or GNK (steady earnings so far, and awesome balance sheet). For a quick strong price push I understand that DRYS has short interest 3 times that of EXM and GNK, and so when it moves, it really moves. Are you looking for a short term play, or a longer term hold in this sector?
I'm always short term, I rarely go to bed Long on Friday Night. I'll probably be in & out of drys 3 or more times before it sees $12. I too was in drys back in early Dec. and historically speaking, it's not the most profitable way to ride the wave up, but I wasn't hurt when it went off the waterfall either. I like drys for all the reasons you mentioned. Great volatility, the volume doesn't hurt, and the sector has always been generous with its coat-tails. I wouldn't mind holding some shippers long term but not yet. I think it will revisit its lows again before this is all over and there's some good trading to be had in the meantime. I'm no Millionaire trader, that's just my opinion. P.S. A little contrary to my first sentence, I am actually Long SKF since Thursday afternoon.