Nobody is being 'Careful'. In past 30 days it has slipped way below the 50 day moving average clear down to $10.76 from $14.67. That is over a (-33%) loss and trend indicates it will drop a good deal more with no chance of any Dividend or Yield....
What reverse split. New shares were issued to bond holders just recently. That does not qualify as a reverse split. Point is net assets value at FMV is approx 1.1B. Look at the conservative tonmiletrader estimates. Debt is less than 300M without deducting cash. Market cap is much lower than that. I think EGLE is a great buy for the type of people that liked BALT and DSX. That said I am with your on DRYS. However my risk tolerance is quite high.
Perhaps what caustic said is right, but you're telling me someone buying puts to protect themselves, to give themselves a right to sell the stock at 1.50, gets a double whammy because they completely change the structure of their equity?
Before buying Drys.. Lot of their debt is backed by Orig stk they own.. And all those shrs of Orig stk pledged to lenders.. Have lost a lot of value since pledged.. About now.. Drys may be trying to figure out how to come up with some kind of magic trick, to cover covenants on loans, underwater? Now lenders may work with them, to keep them out of BK... But I wouldn't buy a shr of it, betting they would.. Hell they just tricked some dumb brokers into buying 250M shrs at $1.40 a shr.. But all that money and another $320M in loans, using that Orig stk as collateral, was used to pay off $700M.. Geo E took long ago.. Now it seems those dumb brokers.. Advising you to buy?? BTW: Drys should now have 663M shrs outstanding.. Generating about $85M per qtr in revenues.. And losing about $60M per qtr... In mean time that Orig stk, could very easily become worthless, with what oil prices are doing? If so?? So will drys...
I have been watching that situation.. But seems those options still listed, were tied to obsoleted stk.. Don' really have any value? But do they? I would call the broker that sold those puts.. As it seems that stk that got obsoleted, ended up being worth like .07.. Those $1.50 puts should actually be worth about $1.43 apiece.. In mean time.. Looks like from what Caustic has posted.. They got the bases covered and your puts are worthless?
You should learn the rules of the game before you play with real money.
You entered into an options contract without bothering to understand the simplest details of that contract. Your puts give you the right to sell pre-reorganization stock at $1.50 but since the pre-reorganization stock has all been cancelled the options cannot be exercised and they have zero value. It is astoundingly naive of you to ask "Do I just have to wait until expiration to realize my gains?" You must wait until expiration before you realize your 100% loss for tax purposes. Between now and then you can stare at the top line of this message.
I got these put options before their bankrupcy restructuring and now there's no volume to trade these puts. Can someone help me understand what's happening? Do I just have to wait until expiration to realize my gains? There's 0 bid or ask so I don't even know what the market price is...
Sentiment: Strong Sell
You three pumpers are a hoot. Not one of you have posted on the DRYS board. None of the drys are considered good investments at this time.
Drys Shipping (DRYS) will rise 300% to 500%. Buy before she breaks a dollar. FREE is going under and EGLE did a reverse split. No way $13 holds. Best buy is DRYS.
Sentiment: Strong Buy
Hard to believe you missed the restructuring.
""Also, in accordance with the Plan, all existing equity interests in Eagle Bulk have been cancelled, with such equity interests receiving, subject to dilution, 0.5% of new equity in the reorganized Eagle Bulk and seven-year warrants to acquire an additional 7.5% of the new equity in the reorganized Eagle Bulk, subject to dilution."""
Ohh ok.then why did the shares go up? They went from penny's to dollars