QUOTE AND NEWS
SeekingAlpha  Oct 19  Comment 
By The Specialist: It was close. With the weak market and weaker dry shipping rates last week, I was almost wrong on predicting the start of the dry shipping rally but the last two day bailed me out. Last week I stated, "I mean it this time....
SeekingAlpha  Oct 16  Comment 
By IAEResearch: DryShips (NASDAQ:DRYS) announced that its subsidiary, Ocean Rig (NASDAQ:ORIG), has filed for the IPO of its Master Limited Partnership, Ocean Rig Partners LP. The company has submitted the form F-1 with the Securities and Exchange...
Motley Fool  Oct 16  Comment 
DryShips ran with the herd of several other drybulk stocks. Late digestion/reaction to news the day before?
SeekingAlpha  Oct 15  Comment 
By Orange Peel Investments: By Thom Lachenmann We don't spend an awful amount of time on shipping stocks. We know that it has been tough going for those that have been in the sector, and we no longer have a consultant for dry bulk analysis as...
TheStreet.com  Oct 15  Comment 
DryShips Inc.'s plan to sell $700 million in senior secured notes to refinance its existing convertible notes has fallen through as the value of the asset that was going to secure the notes has sunk rapidly. Such an ill-timed circumstance...
StreetInsider.com  Oct 15  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/DryShips+%28DRYS%29+Reports+Ocean+Rig+Partners+LP+Filed+for+IPO+%28ORIG%29/9911386.html for the full story.
Benzinga  Oct 13  Comment 
DryShips Inc. (NASDAQ: DRYS) was downgraded by Deutsche Bank and Imperial Capital on Monday. Deutsche Bank analyst Amit Mehrotra downgraded the stock from Buy to Hold and lowered the price target from $5 to $2. Imperial Capital analyst...
StreetInsider.com  Oct 13  Comment 
52-Week High: iBio, Inc. (AMEX: IBIO) $2.70. iBio continues to gain on speculation that it could partner to assist in production of Mapp Biopharma's Ebola drug, ZMapp. Shares rose 84 percent Monday after an 84 percent gain last Friday. Alpha...
Motley Fool  Oct 13  Comment 
DryShips is up to its eyeballs in debt and risk. Does that make it a good opportunity for intrepid investors?




 


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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