Posted On: 09/10/2015 2:12:42 PM
Post# of 23145
$DRYS
Basically the company just has too much debt relative to its earning powers, relative to what rates are. They need to do something like this to recapitalise the company,” Amit Mehrotra, Deutsche Bank’s lead shipping analyst, told Splash by phone this afternoon.
“Fast forward six months and the company will have no assets but will have very little debt, some net cash and its stake in Ocean Rig, and it can basically start anew.”
Mehrotra said the implications for DryShips’ stock are uncertain, however. The company has until October 12 to boost its share price to above the $1 per share or else lose its listing on the NASDAQ Global Select Market.
Also don't forget $DRYS owns 60% of all outstanding shares fo $ORIG which is currently trading for $3.01 so essentially you're getting $1.80 worth of assets for .27 currently discounting every other asset that $DRYS owns.
Basically the company just has too much debt relative to its earning powers, relative to what rates are. They need to do something like this to recapitalise the company,” Amit Mehrotra, Deutsche Bank’s lead shipping analyst, told Splash by phone this afternoon.
“Fast forward six months and the company will have no assets but will have very little debt, some net cash and its stake in Ocean Rig, and it can basically start anew.”
Mehrotra said the implications for DryShips’ stock are uncertain, however. The company has until October 12 to boost its share price to above the $1 per share or else lose its listing on the NASDAQ Global Select Market.
Also don't forget $DRYS owns 60% of all outstanding shares fo $ORIG which is currently trading for $3.01 so essentially you're getting $1.80 worth of assets for .27 currently discounting every other asset that $DRYS owns.
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