drmbowen

DryShips: Poised to Rally

I first bought DRYS @ 15ish several years ago, and started selling @ 125. Yes, I lost plenty when it imploded, but, with the CEO's apparent intent not to privatize, have no doubt DRYS will regain its footing the commodity sector revives. Previously, DRYS stayed predictably ahead of GNK. That should reverse now, with DSX (an account of having the best balance sheet) perhaps ceasing to be the laggard and adopting a middling position. However, while DRYS may indeed meet resistance @ 18, it will surely sail on into the 30s and 40s without much trouble (and I agree it will never see >100 again).

2009: Watch the Baltic Dry Index

You'd be better off with GNK as your shipping sector hold. It used to lag to a very predictable degree behind DRYS, but going forward for all the obvious reasons will now run first. And, it pays a higher div than TRMD.


On Jan 01 08:49 AM long_on_oil wrote:

> The best kept little secret in shipping is TRMD. If they pay the
> same dividend in 2009 they did in 2008 the current yield is over
> 11%. A great shipping company with fantastic management that has
> been in business since the 1800's.
> I own TRMD and DRYS and I am going to switch my investment in drys
> to trmd because of the dividend and mainly the management of TRMD.
>
> I have owned DRYS through all this volatility and after reading the
> recent annual report, the connection to cardiff and the way drys
> is being used, scares me.
> The highs of DRYS are much higher than the highs of TRMD but the
> volumes of DRYS is what is suspicious. On the recent comback DRYS
> daily volumes were far greater than the outstanding shares, now something
> is rotten there.
>
> I would appreciate a comment from any of you shipping experts out
> there, since I am a novice at investing in shipping companies (1.4%
> of my portfolio).