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Thursday, February 05, 2009

DRYS: DryShips Inc. (Nasdaq)

DryShips Inc. (more DRYS charts) is a global shipping transportation company specializing in the transportation of dry bulk cargo. Their executive offices are located in Amaroussion, Greece. They are listed on the Nasdaq Exchange (since February 2005) under the symbol "DRYS." Their website says their fleet carrying capacity totals over 4 million dead weight tons.

Well known market timer, Don Wolanchuk, likes Dry Ships (DRYS on the NASDAQ exchange) as a high octane (high risk) stock to take advantage of a bull market rally he expects.

Don's recent comments about DRYS:
  • Feb. 2: @ ~$5 thats one very boolish looking chart....3 gap play on the decline 2 eh...........thanks
  • Feb 4, 2009 @~ $7: lookin at the chart im thinkin 15 to 20 will be here this month.....






Yahoo! Valuation Numbers for DRYS:
DryShips Inc. (NMS: DRYS)

$6.49 Down 0.67 (9.36%) 1:33pm EThelp
Last Trade:6.57
Trade Time:1:19PM ET
Change:Down 0.59 (8.24%)
Prev Close:7.16
Open:7.38
Bid:6.56 x 5800
Ask:6.57 x 4700
1y Target Est:22.57

Day's Range:

6.15
- 7.38
52wk Range:3.04 - 116.43
Volume:21,314,552
Avg Vol (3m):19,373,800
Market Cap:286.11M
P/E (ttm):0.31
EPS (ttm):21.23
Div & Yield:0.80 (13.10%)


Beware, analysts have much lower estimates for next year. The current PE of 0.31 will rise to a PE of 5.3 if the most bearish earnings estimate for 2009 at $1.23 holds true.

Analyst Estimates

Earnings Est Current Year
Dec-08
Next Year
Dec-09
Avg. Estimate 11.453.52
No. of Analysts 59
Low Estimate 10.901.23
High Estimate 11.956.54
Year Ago EPS 9.5411.45

Note the high debt level, again from Yahoo! finance. Total debt of $2.9B greatly exceeds market cap of $286M. The bears may be betting that idle, empty ships during a global recession will make it tough for DRYS to make loan payments.

Balance Sheet
Total Cash (mrq):328.98M
Total Cash Per Share (mrq):7.554
Total Debt (mrq):2.90B
Total Debt/Equity (mrq):1.356
Current Ratio (mrq):0.716
Book Value Per Share (mrq):49.091


Disclosures: None. I currently have no positions in DRYS in my personal, "Kirk Lindstrom's Investment Letter" or "The Retirement Advisor" portfolios.

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3 comments:

  1. With DRYS at $6.22, sown $0.21 (3.27%) on an up day:

    From: widetrack
    Date: February 06, 2009 at 10:12:37
    Subject: DRYS--ms. market no like this much


    ATHENS, GREECE, Feb 06, 2009 (MARKET WIRE via COMTEX) -- DryShips Inc. (DRYS, Trade ) (the "Company" or "DryShips"), a global provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services, announced today the agreement to sell the M/V Toro at a reduced sale price.

    On July 17, 2008, DryShips entered into an agreement to sell the M/V Toro, a 1995 built 73,034 dwt Panamax drybulk carrier, for a price of approximately $63.4 million. DryShips announced today that it has reached an agreement with the Buyers whereby the price will be reduced to $36.0 million. The M/V Toro is currently employed in the spot market. DryShips expects to recognize a gain of approximately $10 million which will be recognized in the first or second quarter of 2009. As part of the agreement the Buyers will release the deposit of $6.3 million to DryShips immediately and will make a new deposit of $1.5 million. If the Buyers fail to remit the remainder of the new purchase price, DryShips will retain the vessel and will be entitled to claim compensation for the difference between the current market price and the original contract price of $63.4 million. The vessel is expected to be delivered to the Buyers by April 2009.


    To: widetrack
    From: da_cheif (don wolanchuk)
    Subject: Re: DRYS--ms. market no like this much
    Date Posted: February 06, 2009 at 10:56:18


    allways sumpting.......but a gift imho

    ReplyDelete
  2. DryShips Dilutes Shares with $475 Million Offering

    Friday May 08, 2009 11:21:29 EDT
    May 08, 2009 (SmarTrend(R) News Watch via COMTEX News Network) --
    Shares of DryShips (NASDAQ:DRYS) plunged during Friday trading after the company announced a $475 million stock offering that will dilute shares by 25%. According to Credit Suisse analyst Greg Lewis, the company needs money for its deep-water-rig assets as well as for bulk new buildings. "This move is highly dilutive," he said in a note to investors, adding that the company has issued almost 200 million shares valued at $1.1 billion since last year's fourth quarter. The stock price has fallen 90% in the last year.

    and

    ryShips to offer $475 mln in stock, shares fall
    Fri May 8, 2009 11:21am EDT

    * Plans at-the-market offering

    * Third offering since November

    * Shares fall 17 pct in morning trade

    * "Enough is enough," says analyst (Recasts; adds details, analysts' comments)

    By Sakthi Prasad

    BANGALORE, May 8 (Reuters) - Greek dry bulk carrier DryShips Inc (DRYS.O: Quote, Profile, Research, Stock Buzz) said it would offer common stock, its third such offering since November, and hopes to raise up to $475 million in an at-the-market offering, sending its shares down 17 percent.

    DryShips, which had earlier raised $500 million in a similar offering announced in January, disclosed its latest offering in a filing with U.S. Securities and Exchange Commission.

    Jefferies & Co analyst Douglas Mavrinac downgraded the stock to "hold" from "buy," saying "enough is enough."

    "With significantly diminished upside, and a knack for destroying equity for investors, we are downgrading DryShips shares," Mavrinac said.

    "I think they wanted to pay down debt. They have been in the mindset that they want to raise cash when they can because they think that banking market is not going to lend as much going forward," Mavrinac said by phone.

    DryShips, which had received a going concern notice from its auditors in March, has so far secured loan covenant waivers for its debt totaling about $1 billion.

    Mavrinac said the company has a debt of about $2.8 billion.

    Oppenheimer analyst Scott Burk downgraded the stock to "perform" from "outperform" and suspended the company's price target citing near-term weakness on this offering.

    "This is the company's third ATM offering since November, which has increased the share count from 43 million to 185 million currently," Burk said.

    Burk said his model suggests that DryShips may be building a cushion of equity to help fund the $2 billion of drill ship capex.

    Last year, DryShips had agreed to buy two ultra deep water drillships for $1.6 billion.

    Burk also said this offering would not be as bad for shareholders as the $500 million offering in January, which helped push the stock as low as $3.20 per share.

    Credit Suisse analyst Gregory Lewis said the offering amounts to 25 percent dilution to existing equity shareholders.

    "As we have said all along DryShips needs money for both its deep water rig assets and any remaining bulk newbuildings," Lewis, who has an "underpeform" rating on the stock, said.

    Shares of the company were trading down 17 percent, or $1.65 at $8.39 in morning trade on Nasdaq.]
    http://www.reuters.com/article/marketsNews/idINBNG38163320090508?rpc=44

    ReplyDelete
  3. options trading4/13/2011 06:03:00 AM

    Good covered point, lots of people simply put something weired theories in front of public.
    But it doesn’t work i think because know one sure how it will going to happen
    It looks like just coping ideas which someone has already written. I found even on
    popular blogs guest bloggers bring same theories which I already know. I observed they
    just try to spice up their article without knowing what really audience want to read.

    ReplyDelete

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