Full disclosure: I bought an 8% position in $DRYS about a week ago, and have rued it every since.
To me, investing has always been a creative outlet. I love the ebbs and flows of it and all of the nuances that often go unnoticed.
Let’s look at $DRYS, as an example.
After the election, this stock went on such a run, people thought they just invented a fucking time machine. The message boards were rampant with speculation, by ebullient traders basking in the warm glow of a stock on fire.
The company did a financing. The stock got annihilated. It sold off a little more. And then got annihilated once more.
Yesterday is dropped an asinine 35% on news of a reverse split. Explain that logic to me.
In short, the stock — quite literally — shot higher towards the sun, got burned, and came crashing down — wingless and depraved. After a 2,000% move higher, it’s now down 99% from its highs.
So after all of that drama, what does the company do to shore up investor confidence?
THEY BOUGHT ANOTHER VESSEL.
What in the actual fuck?
DryShips announces that it has acquired one Very Large Gas Carrier currently under construction at Hyundai Heavy Industries for a purchase price of $83.5 mln. The Company financed the closing price of $21.9 mln by using part its undrawn liquidity under the $200.0 mln New Sifnos Revolver, which now stands at $142.9 mln. The $61.6 mln balance of the purchase price for the VLGC will be payable in installments until the vessel’s delivery from HHI.
“We are very pleased to have acquired our first high specification VLGC newbuilding opening a new era of investments since the restructuring of our balance sheet. The closing of our first investment in the gas carrier segment, DryShips announces that it has acquired one Very Large Gas Carrier currently under construction at Hyundai Heavy Industries for a purchase price of $83.5 mln. The Company financed the closing price of $21.9 mln by using part its undrawn liquidity under the $200.0 mln New Sifnos Revolver, which now stands at $142.9 mln. The $61.6 mln balance of the purchase price for the VLGC will be payable in installments until the vessel’s delivery from HHI.
“We are very pleased to have acquired our first high specification VLGC newbuilding opening a new era of investments since the restructuring of our balance sheet. The closing of our first investment in the gas carrier segment, which we believe will be highly accretive to earnings and cash flow, was financed by our New Sifnos Revolver evidencing once more Mr. George Economou’ s commitment to DryShips.”
I guess we don’t have to sorry about the company dropping $83m into this black hole of a vessel, since it’s going to be ‘highly accretive to earnings.’
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How do you want them to make money? They’ve sold most of their bulkers. Take a look at the naked short position. That’s the fuckery.
I bought $EGLE during a day of dumpster diving thinking it was a credible shipper. Buying these is the equivalent to hearing last call at 3:30 am and striking up a conversation with the sloppy trashed girl.
The best part is they halted $DRYS when it was going up 100% percent in a trading secession but allow it to be raped 10-20% daily while sitting on their hands.
THAT is the problem. I had a ton of DRYS after the previous r/s and I sold it at 16 on the way up because I was sure the Nasdaq would shut it down if it went much higher. Boy was I wrong. And now, they’ve sat on their asses while it goes down 99% in 40 trading days. And when it runs again (and it will), they’ll sit on their asses and I’ll sell at 20% of what I could have gotten. It’s really not worth it.
LOL, they obviously don’t give a flying fuck about shareholders
For fun I followed this on stocktwits where people were complaining that they couldn’t even borrow shares to get short.
I suspect that when they find it easy to borrow is when the shorts will get roasted.
Typically, you don’t build or buy a new ship without a contract in place. I would be interested in the details of that contract, which of course are company confidential. Moving natural gas is a highly specialized task and the capital costs are very high, so there is certainly risk even with a contract in place.
It’s good to see them investing in their company. I hope it goes well and I would t touch that stock with a 10-foot pole just based on all the price shenanigans lately.
“Explain that logic to me.”
rigged
$NVGS