Shipping Industry Struggles Continue in 2017: Today's Reports on DryShips and Top Ships
NEW YORK, NY / ACCESSWIRE / March 27, 2017 / Dryships is currently trading below book value, raising the question of the company being undervalued. The company, however, has just completed a $200 million dilutive capital raise. The company's shares are currently valued at $1.35 per share with a total of 152 million shares outstanding. The company's share value currently stands at $2.82 in book value, representing a 100% upside on the current market value of its shares.
Industry experts say the current dip in stock value does not necessarily translate to an undervalued share price, but the shares remain too risky to hold. The dip is owed to its increasing operating costs. Experts also point to diminishing asset value of Dryships, as the cash will probably be used to buy value-destructive assets. The fluctuations are affecting the company's overall market value negatively, but a positive cash flow has been predicted in the coming days. Investors can expect continued dilution and impairment of charges in the foreseeable months.
Access RDI's DryShips Research Report at: https://ub.rdinvesting.com/news/?ticker=DRYS
Top Ship's shares closed the day on a high, trading at $1.16 per share, representing a 4.5% increase from the previous day's $1.11 per share. The company recently announced that if the discounts persist, going private would be the next option on the horizon. Sabra Capital LLC is the opportunistic buyer of Top Ships shares, with its equity share currently standing at 4.5%.
The steep discount to Net Asset Value might be making the company illiquid, but Sabra Company LLC has continuously dismissed the negative trend, citing that the weakening stock does not reflect the fundamentals of the company. The Net Asset Value is currently delaying large free cash flow generation and capital market activity. The cash flow impediments are affecting the company's commitments to add more vessels. It is also noteworthy that Top Ships started reconstituting its fleet on April 2014, igniting a $30 million secondary stock offer.
Access RDI's Top Ships Research Report at: https://ub.rdinvesting.com/news/?ticker=TOPS
Our Actionable Research on DryShips Inc. (NASDAQ: DRYS) and Top Ships Inc. (NASDAQ: TOPS) can be downloaded free of charge at Research Driven Investing.
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SOURCE: RDInvesting.com
