DryShips Inc. (NASDAQ: DRYS)
DryShips has been on an interesting ride in the market as of late, and today that ride just got more interesting. When the opening bell rang, the stock was trading slightly in the red. From there, we’ve seen a continuation of declines, pushing it further and further into the abyss. 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, and for good reason (which we’ll get into below). When the opening bell rang, the stock was trading in the red. From there, the stock continued falling, bringing the losses to the exponential level. In fact, at the moment (11:26), DRYS is trading at $6.25 per share after a loss of $1.83 per share (22.65%) thus far today.
Why The Stock Is Falling
As soon as our partners at Tradespoon informed us of the declines on DRYS, the CNA Finance team started digging to see if we could find the reason for the drop. In this case, it didn’t take long to find the news. In fact, it seemed to just jump out at us. Unfortunately, the declines appear to be the result of issues with the Securities and Exchange Commission (SEC).
According to recent reports, DryShips made the mistake of lying to the regulatory agency. In fact, breaking news coming down the wire suggests that CEO George Economou lied to the SEC in multiple 6-K filings. It is being alleged that he was able to do so using Panama Papers proxy and corrupt Canadian officials. Of course, there is an ongoing investigation and things aren’t looking too hot at the moment!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching DRYS incredibly closely. In particular, we’re interested in learning more about the alleged lies to the SEC and investors, and how this may play out. We’ll also be paying attention to ORIG, as Economou is the CEO of that company as well. We’ll keep a close eye on the news and be sure to bring it to you as it breaks!
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