DryShips Inc. (NASDAQ: DRYS)
DryShips is having yet another strong day in the market today as the bulls continue to work to gain control on the stock. While there's no doubt that there has been some concern surrounding the stock as of late, there's also been good news recently released that is getting the bulls ramped up. Today, 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, the bulls are working to regain control on DryShips, and at the moment, it's looking like they're doing a pretty good job today. While we are still very early in the day, since the opening bell, the stock has been working toward the top. At the moment (9:39), DRYS is trading at $1.64 per share after a gain of $0.05 per share or 3.15% thus far today.
Do The Bulls Have Horns?
As is normally the case, our partners at Trade Ideas were the first to inform us of the upward run on DRYS. As soon as the CNA Finance team heard of the news that the stock was headed up, we started working to answer the big question... why? In this particular case, there has been no news released today by the company, but we do believe that we know why the stock is gaining.
Recently, DryShips announced the purchase of gas carriers. While this may not sound like a huge deal, at the end of the day, it really is. The reason for this is that the bulk shipping industry, the industry in which the company operates is incredibly volatile. However, gas shipping is a completely different game and volatility isn't nearly as big of an issue.
The idea that DRYS has purchased carriers for gas shows that the company is essentially working to hedge against volatility in their sector. These carriers will bring a bit of stability to the company, and given recent movement surrounding the stock, the stability is much needed.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching DRYS incredibly closely. While there are several topics we're watching, one that will be on the top of the list is the continued progress toward a focus on gas shipments. Nonetheless, as always, we'll continue to follow the story and bring you the news as it breaks!
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