(Total Views: 380)
Posted On: 10/25/2017 2:11:30 PM
Post# of 23060
$DRYS could be a monster squeeze in the making. Forbes article stating positive things about the sector and Dry Ships.
DryShips’ shares have been on a torrid run in the past week, rising 30% and closing above $4.00 in Tuesday’s trading. While Tuesday’s closing price of $4.06 represents a 60% gain for DRYS shares in the past three weeks, that valuation –equivalent to a market capitalization of $410 million–still offers a significant discount to DRYS’ net asset value (NAV,) in my opinion. I calculate DRYS ‘ NAV at $8.03/share currently (see below for details). DRYS’ peers in the dry bulk shipping group trade at much, much smaller discounts to NAV, and one could say DryShips has earned its skepticism, especially among long-term shareholders. The leading indicator for dry bulk shipping rates, the Baltic Dry Index
also keep an eye on $EGLE as a sympathy play.
DryShips’ shares have been on a torrid run in the past week, rising 30% and closing above $4.00 in Tuesday’s trading. While Tuesday’s closing price of $4.06 represents a 60% gain for DRYS shares in the past three weeks, that valuation –equivalent to a market capitalization of $410 million–still offers a significant discount to DRYS’ net asset value (NAV,) in my opinion. I calculate DRYS ‘ NAV at $8.03/share currently (see below for details). DRYS’ peers in the dry bulk shipping group trade at much, much smaller discounts to NAV, and one could say DryShips has earned its skepticism, especially among long-term shareholders. The leading indicator for dry bulk shipping rates, the Baltic Dry Index
also keep an eye on $EGLE as a sympathy play.
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