The move comes after an incredible (and frankly, hard to believe) run from the stock over the past week. From ZeroHedge:
After soaring by 1,500% in the past five days for reasons that remain largely unknown but may have to do with a jump in day rates for dry bulk shippers as well as another dramatic short squeeze within an illiquid market…
… insolvent dry bulk carrier DryShips managed to sucker in a lot of retail investors, a process which continued earlier this morning when the stock was up another 40%.
However, those same retail investors may find themselves the proverbial terminal bagholders, stuck unable to take profit as a result of a T12 trading halt in the stock which was requested by Nasdaq following an “information request.”
It is not clear when and at what price the stock will reopen.
We warned investors yesterday to stay away from DRYS, and this multi-hour trading halt proves the point that stock moves that look too good to be true, they probably are. DryShips is heavily debt-laden, has completed multiple reverse splits this year, and could well enter bankruptcy at any time.
These types of moves are like bonfires — best viewed from a distance, lest you get burned.