Can anybody explain Dryships?

Discussion in 'Finance, Investments, and Careers' started by Russ Smith, Nov 17, 2016.

  1. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    DRYS. I haven't owned it in ages but what an insane run this week.

    Opens monday at 14.50, closes 42.86. Tue opens at 55, high of 110, closes at 73. Wed halted all day. Thur opens at 51.08 closes at 11 down 80%.

    So in about a week it went up 14 fold and then fell 80%.
     
  2. BillsCarnage

    BillsCarnage Registered

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    This article came out not long ago. Not sure i totally understand it though. The lower the price the more shares get issued until it's basically worthless or has $100mil worth of shares issued?

    http://seekingalpha.com/article/4024428-just-happened-dryships-name

     
    Last edited: Nov 17, 2016
  3. jf-08

    jf-08 Administrator; Rules Creator Contributor

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    Never heard of this. Interesting to say the least.
     
  4. oaken1

    oaken1 Stone Cold

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    were there splits in there? without any apparent disaster usually a split is the reason for a huge per share drop... most stocks will split when they hit around $100 but startups and IPO's may split sooner which benefits the initial investors.
     
  5. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    Near as I can tell it wasn't a split. I think people bid it up expecting some news and when the news didn't come, it tanked.

    But I bet the SEC is looking into it. It's at 5.76 right now so half what the low was after it fell 80%.
     
  6. AsUpRoDiGy

    AsUpRoDiGy Magnanimous

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    Sounds like major dilution. Company probably issued more shares against the float to pay off debt. This company loses $660M a year with meager gains. So between dilution, low gains, and high debt...this is simply a pump and dump stock.
     

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