Stephen Rosenman

DryShips Cancels Acquisition of Four Carriers - What Does it Mean for the Stock?

when the shipping industry is doing well, George gives himself and his privately owned Cardiff sweet heart deals on the back of Dryships' shareholders. When the industry collapses, he unloads his mistakes onto Dryships. As you alluded to, shareholders have no recourse with a company based in the Marshall Islands. George is the 21st century pirate and I would not suggest doing business with him.

Dryships Ahoy - Cramer's Lightning Round (5/5/08)

DRYS - Cramer abandoned the Drybulk Shippers in December. He got out at a great time because they all tanked. He did miss their next great move up since mid January, a 50 - 60 per cent jump. But we are glad to have him back on board. Truly the most exciting and least talked about sector in the market place.

DryShips: Look Out for Those Forward PEs

It is very unlikely that ship builders will complete their orders because the yards where the ships are to be built are often green fields. Also as the price of steel goes higher, fewer order will go in and likely orders will be canceled.
Even with spot rates far lower DRYS will be undervalued because their business is so very profitable.
As they diversify into deep oil drilling, their profits will be even better.

A Rising Tide Will Raise DryShips - Barron's

Short sellers took down several fabulous companies to absurd levels i.e. Apple at 116 and PCP at 94. Dryships is an example of a stock that has been battered despite having remarkable growth and earnings. I like to find stocks that are ready for a mighty comeback just as Apple has been doing. It is currently impossible to find any other stock out there with this low a PE and this high an earnings and revenue YOY growth.

DryShips and the Oil Rush

I write about DRYS alot because it amazes me how a company in a traditionally BORING sector like shipping can create so much value for shareholders and yet be so pummeled. Where else can you find a company with such great growth, earnings, ROE, branching into new and profitable businesses (that even headline the WSJ) and yet still trade at PEs of 3-4. There are at least a dozen reasons to own (and write) about DRYS: low valuation, robust industry, rising earnings, more valuable fleet, drill ships, ROE, plus a CEO who does interesting things that to this shareholder bring further value, a large short position against a company with steady and rising earnings and no difficulty getting capital. What other company (except AAPL) could engender more love and hate?

Bullish on Commodities? Consider DryShips

The Street is worried about DRYS because of its foray into oil drill ships (Ocean Rig and options on 2 drill ships). Hopefully the front page of the WSJ speaking to the brilliance of the CEO of Seadrill in developing the exact same assets will allay fears about DRYS. DRYS is the most undervalued stock in all US traded equities.

Dryships' Short Squeeze Potential

I'm glad my article engendered lots of discussion. But to reiterate:
1. the stock is extraordinarily cheap at a P/E of 3-4 depending on what website you use. The other companies that comprise the dry bulk industry have significantly higher P/E values.
2. remarkable earnings and revenue growth far better than most companies that trade publicly regardless of sector.
3. this is a ROE play. The company focus is growth rather than high dividends that investors are used to in the shipping industry. Think AAPL, RIMM not KMP, MO. Whatever is the best play in the market is where DRYS goes, whether it's going spot or converting to longer term, leasing high rate drill ships. So do not expect high dividends or buy backs.
4. management owns a huge portion of stock here, anywhere from 30 to 50% depending on where you look. The CEO has not sold a share; the value of shareholder's stock affects the value of his. His interests are more aligned to shareholders than most other companies out there.
5. When you take out insider stock holdings, the short position is huge. Drys is extremely volatile. At least a quarter of the stock available is short and nearly a quarter of available stock trades every day. I agree it is not for the faint hearted. Good news will drive this stock quickly higher. I expect rises on increasing BDI or more likely continued excellent earnings. With the huge number of stock trades a day plus gargantuan short positions, I do expect the shorts to get crushed.
5. If you look at the previous discussions, you will see the tremendous "short"
passion out there. Alot of money is betting against this company but, in sum,
the stats of this company are hard to beat. You will note no one took me up on the challenge to find any other publicly traded company with this high a yoy revenue and earnings growth, ROE, and low P/E. There is none.

Dryships' Short Squeeze Potential

Reply from author:
Why write about DRYS again? Simply because it is the most undervalued stock in the market bar none. Where else can you get these kind of earnings at such a low price. But again I would like to challenge readers to find another stock with this attractive a year earnings growth, ROE, and low P/E.
To BDP1: DRYS belongs to the drybulk section of shipping. Most of these companies have been public for less than 3 years. Historic prices for tankers are not particularly useful in evaluating dry bulkers. DRYS doesn't have to depend on evaluating P/cash flow because its earnings are far too high. With tankers, you had to look at cash flows because their depreciations were so high they wiped out the earnings. Drys' earnings are so robust they overwhelm depreciation. Yet share price makes for a very appetizing P/E. GEE, put in the depreciation for operating cash flow and the valuations get even more absurd.

DryShips Deserves More Love

Alot of shorts out there. See above comments. The outstanding earnings and revenues speak for themselves. Charter rates should be more than enough to lift share price.

DRYS: Shipper of the Global Commodities Boom

My favorite drybulker and maybe favorite stock. Rent out a cape at over 100,000 dollars a day at a cost of uner 7000. The best deal in town or even the world.