DryShips (DRYS) Stock: Continues To Skyrocket | Here’s Why!

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DryShips Inc. (NASDAQ: DRYS)

DryShips is having an incredible start to the day in the market today. This follows yesterday’s gains of more than 200% in a single day. The stock just seems to be breaking all bounds. So, what’s happening? Today, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to DRYS ahead.





What We’re Seeing From DRYS

As mentioned above, DryShips had an incredible day in the market yesterday, gaining more than 200% in a single session. Now, it seems as though the stock is off to another run. After starting the day well into the green, the stock continues to head upward. Currently (10:20), DRYS is trading at $62.28 per share after a gain of $19.42 per share (45.32%) so far this session.

Why Is The Stock Seeing Such Strong Gains

The gains on DRYS are coming for a very good reason. If we look back, we can see that in mid-2016, the stock took a big dive. Since then, it’s been falling. The reality is that investors have been concerned about multiple credit facilities that, at this point, have come to maturity. However, even though they are mature, DryShips hasn’t made the balloon payments.

Yesterday, news broke that DRYS was working with its lenders to renegotiate the terms of these loans. The company has also sold several assets in an attempt to pay these loans. Nonetheless, lenders seem to be willing to work with the company, meaning that the mature credit facilities likely aren’t a big problem. As a result, investor concerns with regard to debt are being alleviated and DRYS is making its way back to the top as a result.

What We’ll Be Watching For Ahead

First and foremost, I want to let you know that further gains are likely coming for DryShips. The company has alleviated major concerns and is now likely to climb close to levels seen previously, before the big dip. So, there’s still some movement here. Nonetheless, we’ll also be keeping a close eye on how DRYS restructures its debt. It will be interesting to see what the long-run implications of the move will be. Nonetheless, the stock is seeing impressive growth now and will likely continue on the trend ahead.

UPDATE 10:36AM – DRYS shares have been halted.

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[Image Courtesy of Wikimedia]

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