DryShips Inc (DRYS). - What is the deal? Should you buy this stock?
Dryships Inc. was recently introduced by a close friend in a dinner party. My key takeaway was that stock volatility was super high in November 2016. and has been sliding since then with a return on equity at time of writing this blog now being close to -990%...
I followed the stock for two weeks and made 12% in two weeks. In that course I researched the stock over multiple sites, both good and bad. Here is what the profile of the business is :
Business Industry primarily transportation services for drybulk goods. With trump tightening borders prospects seem to be a sinking one.
Net profit margins - - 600% - basically for every $1 of investment company is giving up $6 more .. that definitely makes this a pinksheets market stock at least now.
Most Recent Media News - Today after market close, the price of the stock sank below $3.65. Some of the popular analysts are predicting the stock to trend towards reverse split one more time !! yes several reverse splits in last 3 months... see the google charts yourself
What does key indicators tell?
Interesting thing- Relative strength Index on stockcharts.com still show this stock floating at 37.05.. which is strange it should be well below 30. Indicates active buyers and sellers even at this point of stock ;)
It also appears from various web researches that the company has signed up a $200m stock purchase agreement with another firm Kalani, that may further drive down the sock value. However there seems to be an opportunity that with the money DryShips Inc gets through this deal will allow them to buy more vessels and start marching towards positive cash flow. Is that likely? Well look at financial fundamentals. Last year to this year the net revenues increased, the financial support company has to keep doing business is still not withdrawn. So possibility ? Yes ...
One question though to ask : Who throws money in a sinking ship..?
My decision. - Buy low sell high - but frequently.. do not sit more than 3 days.. in fact next week just observe...
I followed the stock for two weeks and made 12% in two weeks. In that course I researched the stock over multiple sites, both good and bad. Here is what the profile of the business is :
Business Industry primarily transportation services for drybulk goods. With trump tightening borders prospects seem to be a sinking one.
Net profit margins - - 600% - basically for every $1 of investment company is giving up $6 more .. that definitely makes this a pinksheets market stock at least now.
Most Recent Media News - Today after market close, the price of the stock sank below $3.65. Some of the popular analysts are predicting the stock to trend towards reverse split one more time !! yes several reverse splits in last 3 months... see the google charts yourself
What does key indicators tell?
Interesting thing- Relative strength Index on stockcharts.com still show this stock floating at 37.05.. which is strange it should be well below 30. Indicates active buyers and sellers even at this point of stock ;)
It also appears from various web researches that the company has signed up a $200m stock purchase agreement with another firm Kalani, that may further drive down the sock value. However there seems to be an opportunity that with the money DryShips Inc gets through this deal will allow them to buy more vessels and start marching towards positive cash flow. Is that likely? Well look at financial fundamentals. Last year to this year the net revenues increased, the financial support company has to keep doing business is still not withdrawn. So possibility ? Yes ...
One question though to ask : Who throws money in a sinking ship..?
My decision. - Buy low sell high - but frequently.. do not sit more than 3 days.. in fact next week just observe...
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