The firm that has taken the place of Sirius among market gamblers is DryShips (DRYS), the Athens-based shipping company. A year ago, the stock traded at $116.43. Recently, it dropped to $2.72. Over 35 million shares in Dryships trade in an average day.
By most measures, DryShips is tiny, which makes the market’s obsession with the company even more fascinating. Last quarter, the firm has revenue of $196 million, down 15% from the year before. The company lost $101 million compared to a profit of $176 million in the same period last ear when DryShips had a market cap of $18 billion.
DryShips stock is rising again. It trades near $10. Earnings were poor but beat forecasts. The company raised $500 million. The collapse in global trade that nearly brought the company down is easing.
DryShips will probably survive, but it won’t trade over $100 again. Too many people follow the stock now. They can see the company’s vulnerability which is exactly what happened to Sirius XM (SIRI). It dawned on the satellite radio firm’s investors that it was just an ordinary company, perhaps too ordinary to stay in business.
Douglas A. McIntyre
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks