- DryShips (DRYS -4.8%) extends yesterday's heavy losses following its sale of 17 of its dry bulk vessels, as Deutsche Bank's Amit Mehrotra maintains a Hold rating for DRYS while reducing its price target to $0.35 from $0.50.
- Mehrotra estimates the equity value of the remaining 22 ships at $235M, or $0.35/share - i.e., the revised price target.
- Following previously announced tanker sales and yesterday’s news, the analyst estimates DRYS will have total debt of $380M, down from $1B-plus; cash of $195M, up from $10M; and an unchanged $160M stake in Ocean Rig UDW (ORIG -4.7%).
- "The moves effectively create a new base for the company to rise from, though it will likely be years before existing shareholders, who have almost been wiped out, to start recouping their losses," Mehrotra writes.