audiophul audiophul • Feb 16, 2012 1:59 PM Flag17 users liked this posts users disliked this posts 19 Reply Why is DRYS different than other drybulkers?
For you newbies in all seriousness...
1. DRYS income is going to be 75% derived from ultra-deep water drilling at least from Q1 onward. Not so much in Q4, just know that when earnings come out.
2. DRYS bulkers which are on time charter have good long charters. Those on spot stand a very good chance of being sold off, as the CEO prefers younger ships and does churn the fleet quite often. Recent acquisition of OCNF built the fleet up and would allow for the sale now of the elderly vessels, leaving a fleet of younger, chartered vessels.
3. Tanker investment in 12 Suezmax and Aframax tankers should be profitable in another year or two as the tanker industry deals with it's glut through lower orders 2013 and beyond and higher scrapping on a fleet much smaller than drybulk.
4. The CEO owns around 60 million shares of DRYS and at least 4 million shares in ORIG. The year end bonuses have not yet been revealed, I expect he'll get a few million more for his troubles last year. You'd think that at some point he'd start acting like those shares and their worth mattered to him.
5. Drybulk is just screwed. The whole industry and for at least two more years. Anyone telling you it is in good shape or rebounding is flat out lying. Have them come here and tell me the reasons they think it is not the way I say and I'll set them straight. I'll bet they are missing many things.
6. This company while headquartered in Greece is domeciled in the Marshall Islands so they are not subject to the woes of Greece. They are paid in dollars by international customers.
7. The book value should be pretty much ignored, however, with some recent acqusitions and with much of the value in DRYS being in ORIG, one can certainly argue that DRYS is undervalued by a few bucks.