drys long

Bullish on Commodities? Consider DryShips

I think the stock has the valuation that it has because of scepticism regarding the CEO and, from what I understand, the market expects a flood of newbuilds in 2009 (I can't confirm this). Between now and then DRYS will likely trade as a leveraged play on the Baltic Dry Index. As the index bounces around so will DRYS but more violently (I'd love to know the beta for DRYS vs. the BDI). With sell-side research price targets ranging from $55 to $160 there is certainly room for both longs and shorts to be involved. Thanks to daverichmond for the color (above).