DryShips Inc. (NASDAQ: DRYS)
DryShips is having a strong start to today’s trading session. At the opening bell, the stock was already trading slightly in the green. While we are only a few minutes into the day, the gains remain impressive. 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 is having an incredibly strong start to today’s trading session. At the opening bell, the stock was already trading slightly in the green. While the trading session is only a few minutes old, the gains seem like they will stick around for a while. Currently (9:37), DRYS is trading at $1.35 per share after a gain of $0.04 per share or 3.05% thus far today.
Why The Stock Is Headed Upward
As is almost always the case, our partners at Trade Ideas were the first to inform us of the gains on DRYS. As soon as we received the alert, the CNA Finance team started digging to see exactly why the stock was making a run for the top. It didn’t take long to dig up the story. It seems as though today’s gains are the result of excitement surrounding acquisition news that was released yesterday.
Yesterday, DryShips announced that it had exercised an option under a previously announced option agreement to acquire up to four Very Large Gas Carriers that are currently under construction at Hyundai Heavy Industries. The company will pay a purchase price of $83.5 million. In a statement, George Economou, CEO and Chairman at DRYS had the following to offer…
“We are very pleased to have declared our second option to purchase a high specification VLGC with long term employment to an oil major at above market rates. This second investment in the gas carrier segment marks our confidence to the expected positive long-term fundamentals of the gas market and allows us to deploy the Company’s available liquidity immediately.”
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 interested in watching this investment turn to profits. Nonetheless, we’ll be watching the news closely and we will continue to bring it to you as it breaks!
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[Image Courtesy of Wikimedia]