There's absolutely no reason for these kind of drops.
A dividend has been offered and a possible stock buy back.
Can you tell me a reason as to why this stock is going down?
Please make it a logical one and not some asinine answer.
Dude,GE just gave it to the Machines, he rolled tankers he didn't want into DRYS he bailed out a Nephew and all along all we heard was "This should come as no surprise" the days of GE making 100k a day on rates is gone for life so he needs to show a little class in how he runs this company, if not the Chinese Machines will take him down... that's along with the rest of us shareholders. Now that's the real story...Any Questions...
Hard to say for sure, there are too many factors. But I think that this industry is going through consolidation and in the end that is good for pricing. Another myth is that oversupply destroys pricing. It is the lack of coordinated control of supply that damages pricing. Look at gasoline. The refiners want higher prices, they shut down 25% of their capacity, and suddenly there's a shortage. GE is building a diversified company that will have many opportunities to benefit from the resumption of moderate global growth. I guess the question is, do you think global growth will resume within the next 15 years, and will DRYS be around? I think the answer to both is yes.
I don't agree that the oil price decline is necessarily bad for DRYS. The lower the end product price, the higher the demand. The higher the demand, the higher the need to drill and ship product in tankers. A low oil price is good for the global economy, and this would be bullish for DRYS. That's why the financial terrorists of 2008, drove the price of crude up, while shorting the banks, creating a credit freeze. That was the formula for the recession. Choke off and squeeze the consumer, then watch every industry suffer. The everyday mantra of the CNBC pundits at the time was short the banks, and buy oil. Then freak Cramer told everyone to walk away from their mortgage obligations. Then throw in Schumer (most likely at the direction of GS), purposely causing a run on Indymac bank (and creating a total bank panic) and you have the recession. Just a few opinions based on connecting a few dots.
I see this as being related to the overall market decline, money is flowing out of risk. Virtually every one of my smallc aps has gotten hit very similarly. DRYS also still correlates strongly with the Baltic Drys Index and shippers in general, despite its changing business model. Combine that with a general lack of interest in the market about DRYS, you can blame GE for that. The guy knows how to run a shipping company, but he is relatively crooked imo and no one on the Street trusts him. Ona day like yesterdya and today, when eveyrthing was on sale, there is little need to buy into something like DRYS.
The beauty of the upcoming Earnings report is that it highlights the diversificaiton away from shipping and into drilling. Granted, with oil in the $80s, this could hit the other way quickly if oil drops below $75 (at which point alot of drilling & exploratory will be shelved).
If you are a true long, view it as a buying opportunity; if you are a trader, I have no idea what to tell you as it will likely be different depending on the time of day you are reading this.
sntrenb: If what you're saying is accurate, why the massive selloff of this stock? Are all the sellers stupid and can't see this? Something smells really bad in this stock and people are bailing out. Could have something to do with GE and the way he keeps finding ways of screwing the shareholders while he gets richer. And no, I'm not a short - I have no interest in this stock although I have in the past - sometimes I made money and sometimes I lost but I have no personal stake in the current outcome. I try to keep up on the misery index of this stock and to get some comic relief from some of the posters.
The only reason for the spin off is to have shares in US public hands so they can meet the NASDAQ and SEC requirements to be listed. Once listed, OCRG price should reflect a value that makes DRYS remaining portion worth > $2B. That's how it helps existing shareholders, not the tiny amount distributed.
It's mho that this was a large fund that wanted out and un-loaded every day for the past 8 days. Why else would we be closing .20 to .25 each of these days, Seems like this was a controlled sell off by a biggie.