Dryships (DRYS) continues to post impressive gains day after day closing at 33.69 friday, another all time high. This recent uptrend has seen some impressive volume, especially in the past two weeks. What are your guys thoughts? How long will this trend last?
Google finance is reporting Dryships, Inc. equity increasing, income increasing, and sales revenue increasing. Dryships' business is growing. http://www.investor.reuters.wallst.com/stocks/company-profile.asp?rpc=66&ticker=DRYS.O describes Dryships, Inc. as a Greek marine shipping company that operates worldwide. Bigcharts.com reports Dryships, Inc. pays a 2.37 % dividend yield. http://finance.yahoo.com/q/ks?s=DRYS shows 35.49 million shares outstanding. I interpret the data as describing a small (low capitalization) company trading publically for about three years, showing a high growth rate and an increasing stock price trading at historic high price level. No one can consistently, correctly and reliably predict the future. Sometimes small companies continue growing many years. I suspect long term position trading of small growing companies is suited for small accounts. Commissions, slippage costs and long term capital gains taxes are minimal. I might sell DRYS stock if daily closing price becomes less than the value of the 300 day moving average. My intention is to hold the stock for years as long as the stock price continues rising. DRYS closing price is $ 33.69 / share. The value of the 300 day simple moving average is about 14.50. If I have $ 10,000 in savings and choose to use 1 % risk then my position size = (1 % of $ 10,000) / ( 33.69-14.50 ) = $ 100 / ( $ 19.19 / 1 share ) = 5.21 shares. Rounding down gives position size of 5 shares. I can not know what the outcome of this trade is but I remember cases of growth stocks showing greater than % 20 / year rates of return. Returns depend on the risk level. Greater risk can produce greater profit but also greater account equity volatility. Sometimes little things <img src=http://www.belleville.k12.wi.us/bhs/pathways/images/red_oak_seedling_small.jpeg \img> grow and become big things. <img src=http://raider.muc.edu/Organizations/apo/oaktree.jpg \img>
Thanks for the tip, although I won't be going long. Can't wait for this nice juicy correction to the 20 DMA. This stock likes to bounce off it. 10% + if your timing is right
I'm a bigger fan of TNP which can do Arctic transports and trades at a really low PE. Much better buy now. I had a bunch of DRYS calls and made money off of it's crazy run, but that thing is getting a bit far up and could explode quickly. You could look at a straddle perhaps before earnings or something as it moves big and fast.
It's been great on the intra day swings too. But it does seem to be getting a bit verticle. Just like FCSX...with it's 70cent swings on 4000 shares. Gotta keep your stops wide.
I observe DRYS trading at a historical high price. The DRYS historical high price appears at a time when general stock market index values are decreasing.