DryShips Inc. (NASDAQ: DRYS) is having an overwhelmingly strong day in the market today, following serious losses experienced last week. It kind of reminds me of an old saying that my dad would utter when I tried to make something that was obviously bad look good. “You can polish a turd, but it will always be a turd!” Well, my friends, that’s what we have with DRYS. You can keep polishing if you’d like, but all you’ll end up with is a hand full of shiny crap!
DRYS Deserves Investigation, Not Support!
For some reason, and one that I simply can’t understand, DryShips is having yet another strong day in the market today. This is proving to be a repetitive process. So, for those of you who missed it the past several times, here’s how it all works.
It starts with DRYS processing a reverse stock split. That’s something that has taken place 5 times so far this year, and will likely take place more. From there, the stock falls dramatically. However, a few days later, we see a trader-fueled pop, like the one we’re seeing today. Over time, this money somehow disappears and DRYS finds itself trading below $1 per share yet again, leading to the next split. Classic pump and dump? You be the judge.
Illegal Activities With Kalani Investments
Another big piece of crap that seems to be closely tied to DryShips is known as Kalani Investments. Kalani is known for buying massive amounts of DRYS shares after dilution with the purpose of selling the stock quickly to make a quick buck. In fact, even the Wall Street Journal believes that these activities should be investigated. Here’s what Jill Fisch had to offer:
“If [Kalani is] buying it with the intent to resell, then they’re acting as an underwriter and this is a public offering…”
There would be no problem with that if Kalani was registered with the Securities and Exchange Commission as an underwriter. However, they are not. Instead, they seem to be part of the fraudulent pump-and-dump activity that DRYS continues to take part in.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What Shareholders Should Do
At the end of the day, if you’ve held shares of DRYS throughout this year, you’ve lost a ton of value on your investment, and considering that the past is likely to be indicative of the future, the game playing by George Economou and the DryShips team is far from over. With that said, it’s time to fight back. It’s time to report the company to the SEC, and if enough people do, an investigation will take place, as it should! The bottom line here is that Economou has made it his mission to take money out of your pocket and put it into his. Stop playing the role he wants you to play and start asking the hard questions!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!