DRYS was up 65% in early trading, following yesterday’s 85% collapse. That big purge followed a more than 1,500% rise in the previous five sessions.
Other shipping stocks are seeing similar moves as well, but for whatever reason, none of them have been nearly as severe as the one we’ve seen with DryShips.
Few investors know almost anything about DryShips as an actual company, so let’s go directly to the source. From its company website:
DryShips Inc. is an owner of drybulk carriers and offshore support vessels that operate worldwide.
DryShips owns a fleet of 16 Panamax drybulk carriers with a combined deadweight tonnage of approximately 1.2 million tons, and 6 offshore supply vessels, comprised of 2 platform supply and 4 oil spill recovery vessels.
The company’s executive offices are located in Amaroussion, Greece.
DRYS completed a massive share offering yesterday, which is likely what led to its 85% meltdown. There’s been no news this morning to spur the big snap-back rally, which is really par for the course at this point. Today’s Nasdaq halt follows a similar move earlier this week, when the stock was halted for an entire day.
Today’s halt didn’t last nearly as long, as DRYS resumed trading after just several minutes of inactivity.
To say the action in shipping stocks lately has been volatile would be the understatement of the year. As usual, investors are well advised to avoid these names and simply watch the carnage from a safe distance.