Gaucho

Dry Bulk Shippers: Good to Go

What the did not say was that the DRYS has invested its cash into buying a drilling platform company and new deep water drilling ships. Leasing oil platforms and drilling ships is a natural step for a company that leases dry bulk ships. DRYS eventually pay for most of the acquisition with the cash from operations.

The lease price for the drilling platforms is about 650K a day and rising. The price of oil should remain high and the deep water drilling ships and platforms are in very tight supply. I expect that the return on investment is around 17% and growing if they kept the company.


DRYS CEO stated at the last conference call that he wants to spin the ocean drilling off in1-1 1/2 years. It has been estimated the markets cap from such a spinoff would be around 5 billion. The CEO of DRYS said he will keep a portion of the company its spins off.

I think that he will spin off 50-60% and get all his investment back and still hold nearly 1/2 of a very profitable company. This kind of diversification continues to show the business savvy of DRYS CEO.