DryShips – The Gift That Keeps on Taking (NASDAQ: DRYS)

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DryShips Inc. ($DRYS)

DryShips is the gift that keeps on taking. Looking at my Robinhood history, I first bought $DRYS in March 2016. I only had a small stake, so I let it sit as it continued to lose money. In October, I tripled my stake. My cost basis was $4.80. On Friday, November 11th, the stock had closed at $13.60. Then the following Monday, euphoria strikes. At the close, I sell half of my stake at $41.27. This was a gain of 759%! The following day it touches $100 and closes at $73. That evening, I noticed that CNBC covering $DRYS volatility, (which is a sign of bad omen) so I decided to sell my remaining shares first thing the next morning.

Pre-market activity had the stock trading over $100. I had a big grin on my face. Then, without warning, 15 minutes prior to the opening bell, NASDAQ halts the stock! I sat and watched, and continued to click refresh to see if there were any signs of opening that day. By midday, they decide to halt trading for the rest of the day.

The next morning, Thursday, November 17, the stock opens 50% lower. I finally sold at $15 in disappointment, but still above my cost.

As a trader, I should have closed the books on this one. But like a bad habit, it called me back. I rebought $DRYS two weeks ago at $6. So far, nothing but losses. Taking away some of the gains I made a few months ago. It went as low as $2, but with my small stake, I let it sit.

Camtrading’s Outlook

Should you buy this stock? There is a lot of trading activity on this stock. As an owner of the stock, I obviously want it to go up. However, I only have a small stake in $DRYS. I only have 2% of my non-retirement money in this stock. I don’t recommend much more than that unless you want to live on the wild side. This trade is pure speculation. Buy at your own risk.

Company Summary

DryShips is a bulk shipping company that operates from Greece. On the surface, there isn’t much to like about DryShips. The stock is down -99.6% in the last year. At the close, $DRYS closed lower by -13.9% to $4.83. To no one’s surprise, the company reported a 4Q loss of $84 million after the bell today. It has a market cap of $175 million. Though it may be the worst performing stock that isn’t bankrupt, there is a lot of activity in this stock. Today’s volume was 58 million shares and has an average daily volume of 9.5 million.

Performance

  • 52 Week range:  Low of $1.99 (January 2017) and the High is $2,227 (April 2016)
  • 1 Month performance: -80%
  • 1-year performance: -99.6%

Moving Averages 

  • 50-day simple moving average (SMA): $25.20
  • 100-day SMA: $47.81
  • 200-day SMA: $293.98

Disclosure: I do own stock in DryShips. This article only expresses my opinion and is not a recommendation of the company. Performance data is as of the date of this posting. I started a new section on my blog where I post a quick analysis on companies. Check out my report on Frontier CommunicationsPepsi, and Hasbro

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