Bowman

1 Comment

    • ON: Wed Mar 26th 14:19 PM
      Commented on:
      Dryships' Short Squeeze Potential
      I think Hector really answered your question Stephen.

      Yes, DRYS is undervalued indeed. The question is whether or not (!) this might be a fair price in the future. Shipping is highly cyclical while DRYS is a cash cow for the moment; the reason being George's bold spot exposure, great growth (also check the order book) and of course huge debt. Remember, many people out there sold their entire fleet a year ago... for now, it may look like a clumsy move, but those are not the kind of guys one puts out of business easily. George knows that, that's why he turned for the rigs instead. It is out of fear of cyclicality. The shipping sector is as close as it gets to a "free market", and assets value as much one would pay for them at a specific point in time.

      To get the idea, a ship can change name, flag and papers overnight. Consolidation then wouldn't even be an option...!

      When buying shipping stock you really engage yourself in a partnership. Who would you really prefer as your partner?

      As one previously put it: do you really think this would go your children through college?

      Check Zoulas of EGLE... it's still business at sea, a bit more down to earth though...
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