DryShips (DRYS) Stock: Why It Nearly Tripled In Value Today!

DryShips Inc. (NASDAQ: DRYS)

DryShips is having an incredible day in the market today, and for good reason. In fact, there are two big factors playing a role in the growth we’ve seen in the value of the stock. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to DRYS ahead.

DRYS Nearly Triples

As mentioned above, DryShips is having an incredible day in the market today. The stock started on a positive note and has just been soaring throughout the trading session. Currently (3:08), DRYS is trading at $40.65 after a massive gain of $27.05 per share (198.87%) thus far today.

Why The Stock Is Climbing

At the end of the day, there are two things that are really causing movement here. First and foremost, we have the Baltic Dry Index. This index gives investors an idea of what demand for shipping has been in recent weeks. Well, recently, the index has climbed from 800 to 1000; that’s a massive jump that suggests that shipping demand is going to climb. Of course, DRYS is going to see gains because of it.

However, that’s not the only thing causing the gains. The other thing is the fact that the company is working to restructure its finances. The company is working actively with lenders to restructure bank credit facilities. Recently, investors were getting worried about balloon payments on 3 of these facilities that have matured. However, with the sale of some assets and active work with banks, these concerns are dying off. As a result, DryShips is skyrocketing as this massive boulder is taken off of the shoulders of its shareholders.

What We’ll Be Watching For Ahead

Moving forward, things are looking great for DRYS. However, it’s rare that a stock nearly triples in value without a correction. With that said, look for the profit taking and consider buying at the bottom. At the end of the day, risk is slowly evaporating for DRYS, and the potential for gains is only getting larger.

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[Image Courtesy of Pixabay]

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