DryShips (DRYS)

A play on the basic materials, commodities and emerging markets booms.

When the economy does slowly return, the demand will far outweigh supply and the lack of trade over several months to years will force a free for all to push commodities into port. The Baltic Index will in turn run at a fast pace to keep up, and this company Dryships will be very much the number one to benefit. It's business structure relies on the Spot market and is currently trading at .4 P/E Ratio, with the market Cap greater than its number two and number three competitors, its yeild will be tremendous. You must just wait out the economy turn around as we all are anyway. The $8.50 share price is the best hidden gem on the exchange, hope you don't miss it.

DRYS is one of the most undervalued, trading at just 4x 2008 earnings. Fundamentals suggest a higher multiple should be deserved.

Drys owes money, but at this point not many do not! Drys is a large market cap company. It has settled it's issues with it's debt holders and looks to be in great shape as to expansion. I support this with the non delivery on the three new ships, but the take on the drilling rig. Drys is expanding and will continue in the future. We "common" owners need to sit back and watch the BDI go north and also see what Drys does with its' drilling division.... Questions??? BDI/China is the big unknown! ~Jason Holcomb.... Greenville,SC...USA

massive new infrastructure spending around the world should boost the BDI and shipping stocks such as DRYS

Global oil production will increase as the economy recovers. More demand for oil will increase prices and make deep water exploration more profitable. Dryships has two more deep water rigs in production, so by 2011 there will be 4 deep water rigs in contract at dayrates of 500K to 650K per day. Drill rig revenue combined with the dryship revenue will move the stock into the $10-$12 range within 12 months as global trade recovers.

A technical bottom has formed on the charts. Sell side volume has completely dried up. Majority of shorts have taken profits and exited the stock.

Institutional buying has begun with Oppenheimer buying an estimated 30 million shares on Friday, April 17th, 2009.

Present stock movement reflects the future up to 9 months out. That means that today's price action could reflect market conditions as far out as early 2010. Late 2010 is when a market recovery is expected to be underway with increasing demand and trade which will benefit oceanic shippers.

This is a long term "buy what nobody wants, when nobody wants it, and sell what everybody wants, when everbody wants it" play.

DRYS is quite a ride. Fluctuations in the cost of shipping (gas prices, etc) make the industry a scary one -- but one that provides a key service. DRYS fast-expansion and growing fleets, however look to be a good sign for the stock. I fully expect it to climb back up into the mid 90's before falling back.

Expected earnings was to be a positive catalyst, and although the results really were not much of a driver of the stock, it's still up about 7 points from where we recommended doing a buy / write on the shares. We're still looking at this company and really think that as those written calls expire this month, we'd truly rather be long this company as we go into the fall and winter months. Maybe we're falling in love with the fundamentals of this company; they are extremely compelling - though we warned our readers against this very same notion. One proviso: The size of the float on the shares is so small that they are vulnerable to all sorts of intra-day volatility.

Too little dry bulk ships to meet increasing demand. New ships are expected to come online in late 2009, giving the industry pricing power in 2008.

On February 3, 2009, reached an agreement with Piraeus Bank - one of its largest creditors - to restructure its loans with the bank.^[1] Working with its creditors will help DRYS focus on maximizing revenue and income for shareholders.