QUOTE AND NEWS
TheStreet.com  Nov 6  Comment 
NEW YORK (TheStreet) -- DryShips shares closed trading up 2.74% to $1.50 on heavy volume on Thursday, continuing to gain following the release of its earnings results after yesterday's closing bell. The Greek shipping company reported third...
Motley Fool  Nov 6  Comment 
The profit DryShips reported may tempt you into the stock, but the profit is an illusion. Tread carefully.
TheStreet.com  Nov 5  Comment 
NEW YORK (TheStreet) -- Shares of DryShips were gaining 4.1% to $1.52 after-hours Wednesday after the shipping company beat analysts' estimates for earnings and revenue for the third quarter. DryShips reported earnings of 7 cents a share for...
TheStreet.com  Oct 28  Comment 
NEW YORK (TheStreet) -- Shares ofaDryShipsa rose 3.57% to $1.60 in afternoon trading Tuesday afteraImperial Capitalaupgraded the stock two levels to "outperform" from "underperform" and increased its price target to $1.90 from $1.40. The firm...
StreetInsider.com  Oct 28  Comment 
UPGRADES Pivotal Research upgrades Twitter, Inc. (NYSE: TWTR) from Sell to Hold while moving its price target from $38 up to $42. Click Here for more color. Imperial Capital boosts DryShips (Nasdaq: DRYS) from Underperform to Outperform and...




 


DryShips Inc. (NASDAQ:DRYS) is a Greek holding company that charters vessels for shipping dry goods overseas. The company is the second largest dry bulk shipper listed in the United States, operating around 40 ships with a combined capacity of over 3.3 million dead weight tons[1]. The average useful life of these vessels is 25 years.[2] Dry bulk vessels deliver commodities such as iron ore (used for steel production), grains and coal throughout the world.

Business Overview

DryShips makes most of its revenues by chartering its vessels to other companies that pay a contracted daily rate to use the ships. The company pursues shorter-term spot contracts as opposed to secured long-term ones, giving DryShips greater exposure to up- and down-swings of daily rates. Its short term strategy is also apparent in its fuel costs, which are paid by DRYS in short-term contracts (and paid by the charterer in long-term contracts).[1]

Business Growth[3]

  • Revenue: Revenue increased from $819.9 million in 2009 to $859.7 million in 2010.
  • Net Income: Net income increased from a loss of $12 million in 2009 to a profit of $190 million in 2010.

Business Segments

I am a positive perosn by nature and I prefer to buy stocks going up but I am starting to see several leading stocks struggle to hold new highs or fail to challenge recent highs. These patterns are familiar and they are suggesting that the r ecent bounce is the final stage before a possible market decline. A perfect example can be the charts posted of DRYS yesterday.

CROX (and other high fliers who miss egnirnas) should be a good candidate for a similar bear call spread as soon as it establishes some upside resistance and as IV stays high or goes even higher in the short-term.

Competition

Most of DryShips' competitors offer very similar services. However, all of them operate largely in specific regions and thus are dependent on both global and region-specific economy.

Diana Shipping: Diana Shipping owns and operates 18 dry bulk shipping vessels with a capacity of over 2 million deadweight tons. Diana's fleet is one of the newest in the world, being over nine years younger than the average merchant fleet. The company earns its revenues by chartering its vessels to other companies for periods of two to five years for a fixed daily fee. The chartering of these vessels involves the delivery of commodities like iron ore and wheat throughout the world.[4]

Genco Shipping: owns around 30 dry bulk vessels, ships used to transport non-liquid goods such as grain or coal. The company has grown at a breakneck but seemingly sustainable pace. Genco's ships, which have a total shipping capacity of approximately 2,615,000 deadweight tons (dwt), move mostly iron ore, coal, grain, and steel products.[5]

Excel Maritime: Excel is a provider of worldwide sea borne transportation services for dry bulk cargo, including among others, iron ore, coal and grain, referred to as major bulks, and steel products, fertilizers, cement, bauxite, sugar and scrap metal, referred to as minor bulks. The Company’s fleet consists of around 40 vessels and, together with seven Panamax vessels under bareboat charters, it operates more than 45 vessels. In addition, the Company has also assumed five joint venture vessel-owning companies, six shipbuilding contracts for six Capesize vessels. Its subsidiaries include Maryville Maritime Inc. (Maryville), Point Holdings Ltd. and Bird Acquisition Corp.[6]

Eagle Bulk: Eagle owns one of the largest fleets of Supramax dry bulk vessels in the world. Dry bulk vessels are ships specifically designed to move dry cargo, like steel and coal, across long distances, like from the U.S. to China. Supramax vessels are a class of large container ship with a carrying capacity of 50,000 to 60,000 deadweight tons (dwt). Because Supramax vessels are defined by their relative small size, they can access many more ports than their larger compatriots. Eagle's entire fleet can hold a little less than a million dwt. The company takes that capacity and charters its ships for periods of 1 to 3 years, and in doing so skirts some of the day to day volatility of the international shipping market.[7]

Navios Maritime: Headquartered in Piraeus, Greece, Navios Maritime Holdings is a Dry Bulk Shipping company with holdings including Navios Maritime Partners LP, Navios GP LLC, Kleimar NV, Horamar Group, Corporacion Navios Sociedad Anonima ("CNSA") and Navios South American Logistics Inc.

References

  1. 1.0 1.1 Wikinvest SEC Files: DRYS 2009 20-F, Item 4
  2. 2008 DRYS 20-F, pg. 46
  3. Wikinvest SEC Files: DRYS 2010 20-F, Item 3
  4. Wikinvest Stock Summary: DSX
  5. Wikinvest Stock Summary: GNK
  6. Google Finance Profile: EXM
  7. Wikinvest Stock Summary: EGLE
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