DRYS Stock Is on the Move Again
DryShips Inc. (NASDAQ:DRYS) will never be accused of being boring. DRYS stock is down again, by eight percent after early Tuesday afternoon trading, adding to the 17% fall since the beginning of the week.
DRYS stock has become known for wild swings, both up and down, as we reported extensively last year. You may remember its enormous spike of an over-120% gain at the beginning of one day, only to fall back to Earth, ending trading with a 66% gain, only to see it all further disappear in the following days and weeks.
Which is to say that DRYS stock is not for the faint of heart, and perhaps more even-keeled investors are hoping for a more solid year. In any case, they certainly must be disappointed with the performance on Tuesday.
The bit of interesting news here, beyond DRYS stock’s performance, is that DryShips announced on Monday that it would exercise its first option on a deal to acquire one very large gas carrier currently under construction by Hyundai Heavy Industries Co Ltd (KRX:009540), the world’s largest ship-building company. The price of the vessel will run DryShips $83.5 million.
“We are very pleased to have declared our first option to purchase a high specification VLGC with long term employment to an oil major at above market rates,” said George Economou, Chairman and Chief Executive Officer of DryShips. (Source: “DryShips (DRYS) Exercises First Option to Acquire One VLGC,” StreetInsider, January 9, 2017.)
This acquisition allows us to deploy the Company’s available liquidity immediately and will be highly accretive to earnings and cash flow. This marks the first acquisition of the Company since the restructuring of its balance sheet and our first investment in the gas carrier segment which we believe has very positive long-term fundamentals.