Looks like DRYS is going under 50 cents today

Discussion in 'Penny Stocks' started by Yoohoo, Jul 7, 2015.

  1. Yoohoo

    Yoohoo Guest

    Joined:
    Feb 2014
    Posts:
    5
    Likes Received:
    1
    You have to expect the worms to come out when the storm hits DRYS. GE has never been one to come out and provide intraday feel good news when this stock is in the doldrums. The weak hands will continue to get persuaded by the downturn which by the way is a market makers dream. Sell 1,000 shares and the price goes down $.01 buy 340 shares it goes up $.03 (today's after market). The sellers are running the trade right now because the uncertainty and association with the Greek economy is causing many to capitulate. I prefer the weak hands to exit. So what has changed since we were at $1.50 earlier this year. First DRYS will be reducing their debt by almost $500 million (tanker debt, ABN Amro and $40 million ORIG) to approx $700 million by the end of this quarter. This will reduce the interest payments by almost $35 mill per year. The panamex spot rates have increased by almost $3,000 per day since the stock was at $1.30 per share. Cash on hand will increase by almost $90 million since it was at $1.30. The biggest negative is ORIG has dropped by 50% since $1.30 per share. However, when ORIG went to $9 per share DRYS didn't budge on the upside either. Bottom line, the balance sheet is stronger than it's been over the last 5 years. BDI is slowly recovering. ORIG still has a ~$5 billion back log. They have NO capital expenditures now or in the near future. Most importantly GE owns approximately 20% of the DRYS stock. Here is the BS with DRYS...They don't have $6 billion of debt, this is ORIG's debt, they have the liquidity (without selling ORIG shares) to weather out the panamex rates that existed in the first quarter for 12-18 months, which are now a thing of the past. The Greece debacle doesn't directly impact DRYS business. Add up the facts even on a very conservative level and the conclusion is DRYS will survive and thrive w/ higher rates. Listen to the parasites on this website and you'll capitulate and possibly short a stock that has already been decimated. Good luck
     
  2. PatriceBa

    PatriceBa Well-Known Member

    Joined:
    Feb 2014
    Posts:
    212
    Likes Received:
    0
    Not good. Time for the reverse split before it's a 50 for 1.
     
Tags:

Share This Page