DryShips (DRYS): One Of The Greatest Day Trading Stocks, Ever
January 29, 2009 by Douglas A. McIntyre
Most investors have never heard of DryShips (DRYS), and almost no one knows what the company does. Its market cap is only $325 million.
The firm operates drybulk carriers and has a fleet of 46. DryShips is based in Athens.
Recently the company faced being in breach of its debt convenants. DryShips is trying to sell $500 million in shares. When that news came out, several brokers, including Credit Suisse, dwongraded that stock.
DryShips trades an average of over 17 million shares a day, and its stock price fluxuates wildly.
DRYS has a 52-week high of $116.43 and a low of $3.04. The bad news about the firm’s debt has driven shares down by 25% today to $9.
For traders who look for volatility, DryShips doesn’t have an equal. Over the last three months, it share price has moved from $22 to $9 in five days. Another five trading days took it down to $3.50. Two weeks later, it was back at $11. Its recent move has been from $15 to just over $8. Its most breathaking move was between August and November as the shares moved from over $76 to under $4.
If DRYS does not resolve its debt problems, it could go from its current price of $9 to zero.
Douglas A. McIntyre
