DryShips Inc. (NASDAQ: DRYS) announced a new quarterly dividend this morning, which sent the stock into the green in the premarket. However, it's trading red at the moment, as investors refuse to be fooled again. Of course, all of this volatility led to a couple of alerts from our partners at Trade Ideas. At the moment (10:33), DRYS is trading at $1.72 per share after a gain of $0.02 per share (1.15%) thus far today.
Investors Refuse To Be Fooled By DRYS Again
As mentioned above, DryShips was off to a relatively strong morning in the market after announcing that its Board of Directors declared a new quarterly cash dividend. The dividend is with regard to the quarter ending on March 31, 2017. Under the company's dividend policy, DRYS will pay a regular fixed quarterly dividend of $2.5 million to the holders of its common stock.
When it comes to the quarter ending on March 31st, the Board of Directors has declared a dividend of $2.5 million to the common stock shareholders on record as of May 1, 2017, which will be payable on or about May 15th. In general, this would lead to gains. However, investors refuse to be fooled again.
At the end of the day, there's quite a bit coming to light about financing at DRYS. Not only is the CEO loaning the company money with a massive interest rate and zero risk, but there are several other issues with the company. For example, there is a large share buyer that is consistently buying shares at a discount and dumping them on the public for gains. At the end of the day, investors are seeing right through the attempt to win them back with a small dividend.
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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 the other plans the company has to win investors back, considering that they don't seem to be falling for this dividend nonsense. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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