DryShips (DRYS) Stock: Halted While NASDAQ Awaits Information

DryShips Inc. (NASDAQ: DRYS)

DryShips has had an incredible run in the market for the past two trading sessions, and for a couple of very good reasons. Today however, the stock is halted. As other stocks are starting their trading for the day, DRYS isn’t doing much of anything. Today, we’ll talk about why the stock soared over the past 2 trading sessions, the halt, what we’re seeing in pre-market, and what we’ll be watching for with regard to the stock ahead.

Why DRYS Soared For 2 Straight Trading Sessions

There’s no secret that DryShips has been climbing in a big way. On Monday, the stock gained well over 200%. Yesterday, the stock gained well over 100%. But what’s causing the movement? Believe it or not, it’s a simple two part answer:

  1. Debt Restructuring – Recently, DRYS has been dealing with incredible declines as investors worried about the company’s debt. In fact, there were three debts that have come to maturity that were concerning investors. However, recently the company informed investors that it has sold assets and is continuing to work with lenders to renegotiate these debts. That’s a big weight off of the shoulders of shareholders.
  2. Baltic Dry Index – Another key piece here is the shipping industry as a whole. Recently, the Baltic Dry Index, an index that gives us a view into the demand for shipping, has been climbing. As a result, shipping stocks across the board are soaring, and it’s definitely been helping DRYS.

NASDAQ Halts Trading

As mentioned above, due to the dramatic runs, NASDAQ has halted trading on DryShips. Earlier today we heard that the index is waiting on information from DRYS. There is no indication of when trading will resume yet.

What We’re Seeing In Pre-Market

While we wait on shares to resume, DRYS is still up. In pre-market, the stock climbed to $109 per share after a gain of $36.00 per share, or 49.32%.

What We’ll Be Watching Ahead

At the end of the day, this thing still has plenty of room to run. As DryShips works out its debt situation and the industry continues to see increased demand, the company is going to benefit. As a result, I’m expecting to see further gains in DRYS!

UPDATE – We may see more halts in the shipping sector. NASDAQ refused to comment on whether or not more halts will come following DRYS.

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[Image Courtesy of Wikipedia]

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