DRYS Stock Smashed by Alleged Lies to SEC
In what is becoming almost routine for DryShips Inc. (NASDAQ:DRYS), DRYS stock is on a wild ride again, down over 16% as of late-morning trading on Tuesday. This time it is due to the company being accused of lying to the U.S. Securities and Exchange Commission (SEC).
While DRYS stock has always been known for its capricious behavior, Tuesday marks a new element in the downtrodden company’s saga. Previously, rapid shifts in the DryShips stock value were attributed to stock splits or an influx of day traders looking to make a quick buck off of the wildly volatile prices.
Tuesday’s news reveals that DryShips CEO George Economou allegedly lied to the SEC in multiple 6-K filings, which understandably has shaken investor confidence in DRYS stock.
The accusations are that Economou used “Panama Papers” proxies and went through corrupt Canadian officials in order to help with their surreptitious dealings around the SEC. (Source: “DryShips (DRYS) Stock: Falling Hard On Lies To SEC!” CNA Finance, January 23, 2017.)
DRYS stock has been in bad positions before and proceeded to have an ebb and flow of rallies and drops. But Tuesday’s news might put the DryShips stock price on an altogether different path. With unproven allegations pointing toward unfaithful actions by the top leadership in DryShips—all the way up to CEO Economou—this may mark a new, perhaps destructive, time for DRYS stock.
It’s never too late to turn around a share price, however, and you never want to be too hasty counting out a once-desirable ticker. At the same time, the negative press surrounding the dealings with the SEC coupled with the fact that DryShips stock has hardly performed well in the past few weeks, and you have what may amount to, if not a death blow for DryShips shares, at the very least a substantial setback.
We’ll be keeping an eye on DryShips as the story develops and keep you up to date on any changes in DRYS stock.