DryShips Inc. (NASDAQ: DRYS)
DryShips is having a very bad day in the market today, only falling further after yesterday’s declines. While the stock was trading in the green at the open, that didn’t last very long. As soon as the trading session started, the stock started to dive, quickly making it to the red and beyond. Below, we’ll talk about what we’re seeing from DRYS, why, and what we’ll be watching for ahead.
What We’re Seeing From DRYS
As mentioned above, DryShips isn’t having the best of days in the market today. In fact, the stock is seeing some big losses. In the pre-market, things looked like they might go well. In fact, the stock opened the day slightly in the green, thanks to strong pre-market activity. Nonetheless, at the open, it took a dive, and it has been falling ever since. At the moment (11:08), DRYS is trading at $2.75 per share after a loss of $0.53 per share (16.16%) thus far today.
Why The Stock Is Falling
As is almost always the case, our partners at Trade Ideas brought the alert to us first about the downward movement on DRYS. As soon as we received the alert, the CNA Finance team started working to see why the stock was falling so hard. The truth is that there has been no fundamental news released that would suggest such strong declines. Nonetheless, we believe we know the reason for the fall.
A short while ago, DryShips announced a $200 million fund raise. While most experts covering the story saw it as incredibly dillutive and not likely to be in the best interest of investors, excitement surrounding the raise sent the stock higher. However, that excitement has died off, and now investors are back to concerns.
At the end of the day, DRYS isn’t in the best position at the moment. Not only is the company likely to hit some major financial headwinds soon, there are also allegations of potential fraud on behalf of the CEO that have been surfacing for weeks. With no new positive news, investors are forced to move based on what they know about the company; unfortunately, that’s not good news for the stock price.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on DRYS. In particular, we’re watching for an update from the company in an attempt to stop the bleeding. We’ll keep a close eye on the news and continue to bring it to you as it breaks!
Update (11:43): DRYS continues on the steady downtrend. Currently, the stock is trading at $2.68 per share after a loss of $0.60 per share (18.45%) thus far today. Considering the rate of the fall, it wouldn’t be unrealistic for the stock to close down between 20% and 25% today. Further declines are likely to come as the bears take charge and the bulls abandon ship!
UPDATE Feb 23, 11:07 – Things don’t seem to be getting any better as DRYS continues the plunge. At the moment, the stock is trading at $2.26 per share after a loss of $0.44 per share or 16.30% thus far today. Considering the momentum, chances are that there is still room to fall!
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