advice guys DRYS

HuskerFan1 · May 14, 2011

so ive owned this stock for maybe 6months...they are going to spin off ocean rig (they just signed a 1.1billion deal with PBR)

the stock is $4.40 any reason why i shouldnt buy more? i just dont see much downside here?

anyone else own this or looking at it?

tanner12oz · May 14, 2011

looked at this years ago when they were on the verge of collapse and honestly they havent moved much higher since....i dont have a strong opinion on it...personally i wouldnt touch it BUT if you did want to reload i could see it getting closer to 4.00-4.15...the thing that kills it for me is....

Total Cash (mrq):391.53MTotal Cash Per Share (mrq):0.98Total Debt (mrq):2.95B

SmallDaddy · May 15, 2011

I have a few shippers (that pay dividends) . I figure eventually things will pick back up. WHenever that might be, who knows. I saw for DRYS their average price was in the high mid to high teens. Even if it takes 10 years to get back to that. That is still a nice yearly return

IMO its an oversaturated industry but not a dying one. Goods need to be moved, so you always gonna need shippers

Pick the 5 best ones. Even if one or two goes down, that just means more business for the rest

DeathEatsaCracker · May 15, 2011

Be careful. DRYS CEO will bilk shareholders at every opportunity.

tanner12oz · May 16, 2011

theres your $4 entry if you are still tempted....i still suggest treading lightly here...debt load to high

HuskerFan1 · May 16, 2011

yes but they are still going to spin off the other company...so your going to own 2 companies and the ocean rig company has 2 billion in backlogged revenues....

i havent added yet but i did sell my chk today and did buy GPL around $2.94 lol it closed at $2.80 but im glad i got it under $3

gonaturalgas · May 17, 2011

I like that company. My group took ESEA public. Roth Capital out of Newport Beach did their raise when they went public. It was about 40M at 3 bucks per share. I started following the industry a bit because I owned ESEA. I swear, I earned 35K shares for my work and I sold on the way up from 3 bucks to 8 bucks. WHen I sold my last share the stock shoot up to 35 bucks. I wanted to shoot myself. hahaha. damnit. It's back down to where I sold.

I like DRYS but if the economy or dollar collapses I imagine the stock will go lower. Buy in but have cash on sidelines in case it falls more and average in. good luck

tiznow · May 17, 2011

Overcapacity of global ships is utterly insane....shippers loaded up on debt building fleets thinking the party would continue forever.......no clue about this particular company.....but the industry much like housing is a dead market long term and will take a long time to work through the huge backlogs of supply