Wow. someone really wants this up
DryShips Inc. (NASDAQ: DRYS) was started as Buy with a $5 price target at Deutsche Bank in a late-Monday call. The Deutsche Bank research on the sector was very positive, with 2015 expected to be a solid year for growth across shipping. The shares closed trading Friday at $3.00.
Read more: Stocks Trading Under $10 With Huge Upside Potential
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Bump. You know schmickerschmuck was the one who gave you the thumbs down. That brain surgeon wants you to sell at all time lows.
Wow, I'm so glad you can read the future. Why bother to show up. Can you tell me who's going to win the Super Bowl this year too so I can get my bet in early?
Couple of things. There's a pretty strong vested interest in this sector right now with all the private equity and others who got long expecting rate rises. This could go either way. The DB upgrade, even through the guy is a no name analyst, I think conveys the message that the bond refi is on track. The Nov. ER and bond refi news are the tipping point. That's either going to launch this thing or have everyone disappointed and bailing out IMO. I'm pretty good at reading r/s in the day in and day out trading and right now, I don't see any real selling pressure, just the usual #$%$ that goes on with the indices and option expiration. The stock hasn't been 2.50 in over a year now so it's going to take the disappointed masses bailing to get there. Or a real market dump. So the only way to make money selling options is between 2.80 or so and 3 and then 3 and 3.50. You know the premiums are a joke so there needs to be some wide swings. The short interest is nothing anymore but I wonder if they'll start coming back if rates don't get up there soon.
Personally, I am disappointed and am doubting now there will be any real up move the rest of the year. Chart has a cup and handle on the weekly, but the handle is getting pretty long there. Something needs to happen soon. Once the quarter is over next week and all the commodity dumping is over, let's take a look. I am going to dump my position if it runs up over 4 before the earning report or maybe even over 3.50 unless the rates are really rising. If I have to buy back after much higher, that's fine.
Companies do not do back to back bond deals to file for Chapter 11 in a matter of months. They do it to buy time. My only guess is that the recent fall off in commodity names across industries has hit some of the most leveraged and weakest players harder, and investors have thrown in the towel on waiting for met coal to recover. I understand the sentiment but it flies in the face of recent management actions which show a desire to wait the met coal cycle out. There were recent articles from Nomura on a longer trough in coal prices, but that is one firm's opinion and shouldn't cause this type of panic. If as I suspect, WLT keeps out of bankruptcy for the time being, the stock should go back to the $5-6 range and the bonds should also retrace. There is zero logic to this move.
Additional disclosure: Positions can and do change without warning or notice.
If you can find any post of mine saying I bought in the 19s, I'll give you $500 for each one. It never happened. I bought in the 15s and 16s and flipped. I also bought at 37 and sold at 40. I bought at 12.84 and scratched for 5 cents loss. I bought at 4.30 and sold at 6. My cost right now is 3.20 and I could give a rat's #$%$ if you believe it. GFY
bump. If you people want to listen to him, have at it. Hope you don't need the money
This is the most irrational thing I have seen in YEARS. I traded Enron, Global Crossing, Worldcom. I traded after 9-11. This is preview of what the overpriced internet junk will do when this market finally turns down. Of course this will snap back hard.