Camden

DryShips: Look Out for Those Forward PEs

For commenter Mark - Re: "If forward earnings ends up being 80% lower, which historically isn't a crazy notion at all if you look at a rate chart, "

Even if rates dropped 80% from where they are today DRYS forward earnings would drop anywhere near 80% because current rates are more than double the year ago rates and more importantly, the company hedged (locked-in) a large portion of it's contracts at the very high rates being offered in the fall (at the top of the spike).

If you think "... using forward PE is pretty silly given its forecast error range is so wide as to be near meaningless" then you must think there is no meaningful way for an analyst that follows DRYS to do his job (to forecast earnings). THAT'S silly.