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DryShips, Inc. Message Board

  • stevencath May 2, 2011 8:00 PM Flag

    DRYS - $15-$20 price target

    DRYS - $15-$20 price target
    DRYS drybulk fleet is 82% hedged on long term contracted charters, hence DRYS exposure to the daily spot is fractional, and the locked in rates for 82% of the fleet are at 200%+ over the daily spot.

    DRYS has 2 IPOs slated, one within 5 months and the second sometime this year.

    The tankers will be IPOed this year but the full delivery & payments will be phased over 3 years; Jeffereys has already priced a +1 to eps, and the windfall IPO cash bucket for them remains undisclosed.

    Then there is the OCRG (Ocean Rig) IPO. With 22% of the company already listed in Oslo for half a billion dollars, and another 60% to be sold in the contractually mandated IPO, Ocean Rig alone will nearly triple the market value of DRYS - even if every other things is just thrown away.

    So why is the sp down near term?
    Chinese New Year, Australia flooding, short & hedge fund disinformation, take your pick.

    Near term noice always succumbs to the fundamental value, and the collosal overshort sold positions will ALL be covered in an abrupt dashing panic as buyer flood money into DRYS on the IPO for OCRG, which may even go higher than the earleir $17.50 - it continues to trade up overseas.

    You can track DRY$ OCRG Ocean Rig UDW Inc. division, 22% listed on the Oslo Norway stock exchange, right here:

    You can then convert the currency from Norwegian Kroners ("NOK") into US Dollars ("USD") here:

    As you can now see & verify for yourself, the 22% stake of DRYS drillships suubsidiary which did its partial listing at $17.50 (USD) is now trading UP at
    $19.58 (USD).

    You just take that number, multiply it by 300%, take the total OCRG UDW revenue stream & divide by 5, and you get total market cap value, just for the oil rigs, of nearly triple the total DRYS market cap, and a retained revenue stream from UDW drilling, plus the long term charters, plus the tankers IPO, and it's merely a matter of a day or at most a few months before all the DRYS shorts chase to cover on the gap up into full valueation fro DRYS, calculated to be in the $15-$20 range minumally.

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