BUSINESS SUMMARY
DryShips, Inc. engages in the ownership and operation of dry bulk carrier vessels worldwide on various trade routes carrying cargoes for a range of industries. The company provides international seaborne transportation services, carrying various cargoes, including coal, iron ore, grains, bauxite, phosphate, fertilizers, and steel products. DryShips owns a fleet of 27 drybulk vessels consisting of 4 Capesize, 21 Panamax, and 2 Handymax vessels, with a combined deadweight tonnage of approximately 2.3 million. DryShips' vessels are managed by an affiliated Liberian company, Cardiff, with offices in Greece. The company was founded in 2004 and is based in Athens, Greece.
DRYS is Rocking good ;) up 4.50% so far
we got good volume on DRYS today ;)
Hey guys,
I have been researching and keeping an eye on this company: "DryShips Inc"
Ticker Symbol: DRYS
Check out the estimate revisions:
http://moneycentral.msn.com/investor/invsub/analyst/earnest.asp?Page=ConsensusEPSTrend&Symbol=DRYS
"Shares of DryShips Up on Report
Monday April 30, 1:58 pm ET
Shares of DryShips Rally After an Analyst Report Reveals Unusually Strong Charter Rates
NEW YORK (AP) -- Shares of DryShips Inc., which owns and operates a fleet of dry bulk tankers, traded higher on Monday after an analyst at Jefferies & Co. reiterated his "Buy" rating on the company and called it a top pick.
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Shares of Athens, Greece-based DryShips rose $2.13, or 6.3 percent, to $35.82 in afternoon trading on the Nasdaq Stock Market. earlier in the session, the stock trade to a 52-week high of $36.05, or 7 percent ahead of its previous close at $33.69. So far this year, the stock has gained 87 percent.
Douglas J. Mavrinac at Jefferies reiterated his "Buy" rating on the company and raised his price target from $32 to $50, which implies an upside of 48 percent.
The analyst cited port congestion that continues to support strong charter rates at a time when seasonal softness should begin emerging. He also noted demand supported by growth in iron ore production and imports of coal by China.
Mavrinac expects industry fleet growth to slow in the second half of this year and next year.
"We continue to believe DryShips is one of the best positioned dry bulk shipping companies under coverage by operating the majority of the its fleet in the attractive dry bulk shipping spot market," Mavrinac wrote in a note to clients on Monday.
Mavrinac estimated that some sizes of dry bulk carrier on the spot market, which would exclude vessels under long-term contract, commanded $66,000 per day, or $10,000 more than previously forecast, during the first quarter."
And if you are still not convinced:
"Zacks Commentary: Value
DryShips, Inc.
By Jim Licato
Apr 26, 2007
Consensus earnings estimates have been on the rise for DryShips, Inc. (DRYS). In early April, the Board of Directors declared a quarterly cash dividend of 20 cents per share, its eighth consecutive quarterly cash dividend. This Zacks #1 Rank stock has a price-to-book ratio of 2.5, compared to 4.5 for the market. Its return on equity more than doubles that of the industry average—21% compared to 8%.
Full Analysis
DryShips, Inc. engages in the ownership and operation of drybulk carriers worldwide. The company's fleet carries various dry bulk commodities, including coal, iron ore, grains, bauxite, phosphate, fertilizers and steel products.
On Feb 28, DRYS reported fourth-quarter profits of 77 cents per share, beating the Street's estimate by two cents. Revenues rose 28.2% to $79.1 million from $61.7 million during the prior-year period.
Chairman and CEO George Economou stated, "We are delighted to report another successful year since our company's listing in February 2005. DryShips has kept its promise and has executed on its stated strategy of growing and renewing its fleet."
On Apr 17, DRYS stated it will purchase three bulk carriers for $49 million each. The company's fleet will stand at 36 after the transactions, with an average age of just 8.6 years. The age of the industry average fleet is currently 12.6 years.
While the consensus earnings estimate for this quarter has remained flat over the past 30 days at 88 cents per share, estimates for next quarter have jumped 30.8% to $1.02. Profit forecasts for this year are up 19.5% to $4.41 over the past month, while estimates for next year have risen 12.7% to $4.54. Both of the covering analysts submitted upward revisions for this year and next.
The Board of Directors recently declared a quarterly cash dividend of 20 cents per common share. The dividend is payable on Apr 30 to stockholders of record as of Apr 16. The payment represented the company's eighth consecutive quarterly cash dividend. DRYS has a current dividend yield of 2.65%.
DRYS is currently trading at a valuation of 6.9x current fiscal-year estimated earnings and at 6.7x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.0x current fiscal-year estimated earnings and at 15.0x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.5, compared to 4.5 for the market.
The company's return on equity more than doubles that of the industry average—21% compared to 8%."
http://www.zacks.com/newsroom/commentary/?id=4844
Please let me know what you think?
Wxmang
"DRYS" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. ;D
All history on a stock pick in 1 thread is awesome. ;)
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock. :( ::)
Thank You....and good luck with all your trades....make some $$$ ;)
Will do next time :)
Sorry about that ;)
Wxmang
All the shipping firms are very strong buys: DRYS, EXM, TBSI, GNK, NM... You name them. The whole shipping industry will have a couple of good years. Baltic Dry keeps hitting new highs everyday.
Ram
What a day fro DRYS!
Guys, please check the fundamentals on this company.
Let me know what you think.
http://finance.yahoo.com/q/bc?s=DRYS&t=1d
I just love these shipping stocks. One day DRYS is down, EXM and TBSI are hitting new highs. Then another day EXM is down and DRYS hits another new high.
Tomorrow is a key day with TBSI's earnings out.
Ram
TBSI 2007 1Q ex-items EPS is 54 cents, beating the estimate by 14 cents. It's trading some 3% higher after hours.
I consider it good news for the shipping stocks.
Ram
DRYS should be hitting a record high today if the COMP doesn't bleed further.
Ramlau, you were the only one that listened about DRYS ;)
Almost made 25% in two weeks :)
Taking a nice profit right here and now!
Wxmang
DRYS just keeps on climbing. Had a great run last week. Put this together with these headlines, one might begin to understand why shipping is looking up so nicely :
Bush Administration Quietly Plans NAFTA Super Highway
http://www.humanevents.com/article.php?id=15497
Be sure to click on the map for much more information.
NM also moving along nicely in the same boat
update:
DryShips is enjoying a stratospheric rise over the past year. However, despite the runup, the chart is still friendly. Recent consolidation has alleviated the overbought condition and the stock is at support right now. Earnings estimates have soared over the past 90 days. This year's estimates have risen $2.33 to $7.22 per share. Analysts predict another 34.6% growth in earnings next year.
Full Analysis
DryShips, Inc. (DRYS) engages in the ownership and operation of drybulk carriers worldwide. The company's fleet carries various drybulk commodities, including coal, iron ore, and grains, bauxite, phosphate, fertilizers, and steel products. As of August 6, 2007, it owned and operated a fleet of 35 drybulk carriers comprising 5 Capesize, 27 Panamax, 1 Handymax, and 2 newbuilding Panamax vessels with a combined deadweight tonnage of approximately 3 million.
Drybulk charter rates are soaring and are expected to stay elevated for the near-term. Bear Stearns analyst Scott Burk said the booming Chinese economy driving unprecedented demand for iron ore and coal, coupled with port congestion in Asia and Australia, have kept spot charter rates for drybulk vessels in recent months continually surpassing all-time highs.
The company said in late-August it swung to a profit in the second quarter, on an increase in voyage revenue and capital gains from a vessel sale. Net income rose to $110.2 million, or $1.59 per share, compared with a loss of $808,000, or 3 cents per share, in the year-ago period. Analysts expected $1.37 per share. Voyage revenue rose to $112.5 million from $54.5 million.
George Economou, the Company's Chairman and Chief Executive Officer of DryShips Inc., commented: "We are pleased to report a second consecutive quarter with record EBITDA. We remain committed to implementing our previously stated chartering philosophy and to position more vessels to trade in the spot market on a voyage by voyage basis as the vessels are coming off previously concluded short-term charters. As of today, 52% of our fleet operating days for the remainder of 2007 remain unfixed."
The stock has been on a meteoric ride up this year. The chart here only covers the past six months, yet the gains are mind boggling. Is it too late to get in? The chart says no. The stock is at recent support levels and should prove a good time to get in. The moving averages are all supporting the stock. It was overbought, but the recent consolidation has alleviated that problem.
I am so bullish on this stock/company....I am still just as bullish on this stock as if it was still at $10
;)
i would have to agree with you strongly....AMEN!
Man, what an awesome run for DRYS.. ;)
It breakout a year ago and never look back.....wheew!!
DryShips, Inc. (DRYS) engages in the ownership and operation of drybulk carriers worldwide. The company's fleet carries various drybulk commodities, including coal, iron ore, and grains, bauxite, phosphate, fertilizers, and steel products.
As of August 6, 2007, it owned and operated a fleet of 35 drybulk carriers comprising 5 Capesize, 27 Panamax, 1 Handymax, and 2 newbuilding Panamax vessels with a combined deadweight tonnage of approximately 3 million. The company was founded in 2004 and is headquartered in Athens, Greece.
The company said this week it agreed to purchase a 2001-built Capesize vessel for $152.3 million, and plans to sell a 1993-built carrier. The 172,579 deadweight-ton vessel will be delivered to DryShips during the second quarter of next year, and has not yet been contracted.
DryShips also agreed to sell a 149,475 deadweight-ton Capesize carrier for $93.9 million. The company expects a net profit of $62.2 million. Delivery is expected in the first quarter of 2008. Capesize vessels carry cargo including iron ore and coal and generally weigh more than 150,000 deadweight tons. They are too big for the Panama and Suez canals and must instead sail around the Cape of Good Hope or Cape Horn to travel between oceans.
In early-November, the company said that third-quarter earnings came in ahead of expectations due to soaring charter rates for its vessels. The company earned $103.5 million, or $2.38 per share, compared with $3.5 million, or 11 cents per share, in the year-ago quarter. Analysts expected $2.34 per share. Voyage revenue more than doubled to $150 million from $60 million in the prior-year period.
"We are pleased to report a third consecutive quarter with record EBITDA reflecting the strength of the current drybulk market. We continue to actively manage our fleet portfolio with a goal to ensure the longevity and quality of our fleet's earning capacity. Once the recently announced sale and purchase activity has been completed by the second quarter of 2008, the Company's fleet will consist of a total of 46 vessels (including 8 newbuildings) with an average age of 8.5 years, well below the industry average of about 13 years."
Regarding the outlook, the CEO said, "The outlook for 2008 remains positive. We will have approximately 16% more fleet operating days compared to 2007 and approximately 85% of the fleet operating days unfixed. With overall debt leverage of just below 25% adjusted for the market values of its vessels, DryShips is in a unique position to seek growth opportunities as they arise."
Over the past 90 days, this year's earnings estimates have soared $1.86 to $8.93 per share. Analysts expect earnings to leap 95% next year. The stock is cheap at only 5x next year's estimates. The company has posted an average 7% surprise over the past four quarters.
DRYS update, anybody invested yet ?
fyi:
1)
Zacks:
Value - DryShips, Inc. (Nasdaq: DRYS)
DryShips has been anything but dry for its shareholders. The stock has rocketed higher this year and with good reason. Despite the huge runup, the shares only trade for about 5x next year's estimates of $17.42 per share. Over the past 90 days, this year's earnings estimates have soared $1.86 to $8.93 per share. Analysts expect earnings to leap 95% next year.
2)
awesome slideshow:
http://www.irwebpage.com/dryships/files/dryspres111307.pdf
3) chart
Anybody taken a look at these stocks? I want to take a position in some EXM, TBSI and DRYS leaps. They are all at pretty good support levels. Even if they break down I think they will be bought up quickly. They all still have terrific fundamentals I just don't think things have gotten as bad as people think..
I'm thinking strike price about 50% above current price for all these stocks about 3-6 months out. I anticipate a massive move in these stocks with some heavy short covering.
Dry Bulk CEO Forum -Update : Panel says they are 'extremely optimistic' looking into 2008... believes fundamentals are good for 2008, 2009, and beyond... says U.S. exporting of coal is some of the highest they have seen... expects India to continue to strengthen but perhaps not on the same level that China is increasing... seeing a delay in ships being sent out from 'well established'biggest risks to supply in 201 and 2011; could cause delays.
30-Jan-08 11:36 ET In Play Dry Bulk CEO Forum- Panel says projections made in 2004 for 2010 demand in the dry bulk business was surpassed in 2006, and they expect to see a surprising increase similar to the prior one again -Update :
30-Jan-08 11:29 ET In Play Dry Bulk CEO Forum- Panel says they are looking for a strong 2008 in the dry bulk sector, but a particulary strong Q1, especially the end of Q1 -Update :
30-Jan-08 11:27 ET In Play Dry Bulk CEO Forum- Panel says investors should not use the Baltic Dry Index to draw long-term conclusions.. it can be used for a short-term trading instrument though -Update :
30-Jan-08 11:25 ET In Play Dry Bulk CEO Forum- Panel states Baltic Dry Index only reflects the spot market and is not a predictor of what the market is likely to do in the future -Update : Believes it has had more of a psychological effect on the market and does not reflect fundamentals.
30-Jan-08 11:22 ET In Play Dry Bulk CEO Forum -Update : Panel says higher oil is a 'blessing in disguise' for industry since they can transport more coal... says a U.S. slowdown would not have a huge effect on the industry... says the weakened dollar makes shifts in trading patterns; see an increase in exports from the U.S (especially coal and ag products); will see increased ton miles as a result of increased exports... seeing steel companies export out of U.S.; says infrastructure is inellastic (once a project starts it can not be stopped); says project business is 'absolutely booming throughout the world'; says projects are very important to dry bulk shippers... does not expect the subprime credit issues to have a big effect; says the only effect they have seen has been the effect that it has had on their stocks as the whole market is down... says deal announced yesterday (QMAR) shows that the financials are behind dry bulk shippers; huge vote of confidence on industry... notes interest rate cuts have allowed to borrow debt at cheaper rates... Individual dry bulk shipper names trading higher include TBSI +11.5%, DRYS +7.2%, EGLE +5.2%, DSX +4.9%, QMAR +4.5%, EXM +4.1%, PRGN +4.0%, NM +2.7%, GNK +1.9%, ULTR +1.6%.
30-Jan-08 11:12 ET In Play Dry Bulk CEO Forum- Panel says they believe the large correction in the dry bulk sector will reverse itself very shortly -Update :
30-Jan-08 11:12 ET In Play Dry Bulk CEO Forum- Panel states that the best way to play the industry is to invest for the long term -Update :
30-Jan-08 11:10 ET In Play Dry Bulk CEO Forum- Says that there has not been any fundamental change in dry bulk business :
B.C
Dry bulk CEOs bet on strong year despite recession fears
Thu Jan 31, 2008 7:36am EST
BANGALORE, Jan 31 (Reuters) - Demand for dry bulk shipments will remain strong this year despite a recent crash in freight rates, growing fears of a U.S. recession, a weak dollar and high oil prices, chief executives of four major dry bulk carriers said at an industry forum on Wednesday.
Demand from China and other emerging economies will offset falling freight rates, the CEOs of DryShips Inc (DRYS.O: Quote, Profile, Research), Star Bulk Carriers Corp SBLK.O, TBS International (TBSI.O: Quote, Profile, Research) and Quintana Maritime Ltd (QMAR.O: Quote, Profile, Research) said at the Dry Bulk CEO Virtual Forum.
The Baltic Exchange's chief sea freight index for dry commodities .BADI, which monitors major trade routes for coal, iron ore, cement and soft commodities such as grain and sugar, lost about 47 percent, since hitting a life high of 11,039 in November last year.
George Economou of DryShips said the profitability would not be affected due to recent fall in freight rates.
"On average, a capesize vessel would be getting $90,000 a day and the expense is about $6,000 a day and there is a huge margin" he added.
Dry bulk freight rates had touched record highs last year, reaching $200,000 levels for capesize vessels, on strong demand from China and other emerging economies and also due to tight supply of vessels.
Quintana's Chief Executive Stamatis Molaris said Baltic Dry Freight Index is an indicator of spot rates only and does not reveal the future freight rate movements.
"It has nothing to do with the real and underlying fundamentals of our business in the long term and volatilities is also part of dry bulk business in the long term," he said.
Molaris also emphasized there is no change in the fundamentals and investors should not use the index to draw long-term conclusions but could use it as a short term trading instrument.
"The fundamentals are still good for 2008, 2009 and beyond and you will see new routes developing," Economou of DryShips said.
"Even if the U.S. economy slows down significantly we are not likely to see much effects in our business," Quintana's Molaris said at the conference organized by New York-based investor relations and financial communications firm Capital Link and Nasdaq International.
Besides recessionary fears, dry bulk freight rates have been hit this year by a lack of fresh cargo supply at two key global export centers and China's ongoing price negotiations for iron ore.
"The demand has been surprising us favourably in the past and we will see it again, said Chief Executive Akis Tsirigakis of Star Bulk.
OIL, DOLLAR AND SUB-PRIME
The belief that rising oil prices can eat into a shipper's margins was dispelled by Tsirigakis, who clarified that oil is not part of a shipper's cost structure.
"The oil costs are passed on to the charterers and is not part of our cost structure and hence it do not affect us," he said.
Joseph Royce of TBS International said he is continuing to see increasing exports, especially of coal and agricultural products, from the U.S., as they become cheaper due to a weaker dollar.
Royce also added that infrastructure development, which in turn propels demand for dry bulk commodities like iron ore and coal, would continue as project business is booming throughout the world.
Economou of DryShips said the sub-prime mortage-led credit crunch has not affected the companies' operations.
"The only way we are suffering from credit crunch is in the price of the stocks, which has been unnecessarily hurt.
"The fundamentals have not changed and deals are going to be there and you saw one announced yesterday," he said, refering to Excel Maritime Carriers Ltd (EXM.N: Quote, Profile, Research) $2.45 billion buyout of Quintana Maritime.
Quintana's Molaris said his company's sale to Excel Maritime is a huge confidence booster to the shipping market and that right projects will always be financed.
VESSEL SUPPLY
Dry bulk carriers have ordered more ships to meet the growing demand to ship dry bulk commodities to China, India and other emerging economies, which is expected to hit the seas in the next two to three years.
Molaris said the rise in the orderbook to build new ships was spurred by the booming demand and admitted he was sceptical about the rising supply of ships but added that shipyards are constrained with orders.
"We are currently experiencing delays in delivering ships on time from well established shipyards," he said. (Reporting by Sakthi Prasad in Bangalore; Editing by Jarshad Kakkrakandy)
I like drys here as well. Hopefully it will stay above the 200 and break through the 50.
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