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.

Dry Bulk Shippers: The Rebound Begins

Look at drys beat earnings est of 4.08 with 4.50. That puts it forward PE ration at 4.7. That is an insane number. The shipping rates are rising and the BDI is up yet again today. This stock should be selling @ 130 not 85