DryShips Inc. (NASDAQ: DRYS)
DryShips has had an incredible time in the market this week. After climbing about 1,500% on Monday and Tuesday, the stock was halted and didn’t trade at all yesterday. However, it appears that the halt will be lifted today. Below, we’ll talk about why we saw the gains, when you should be able to start trading again, and what we’ll be watching for with regard to DRYS ahead.
Why DRYS Has Been Climbing
As mentioned above, DryShips gained about 1,500% between Monday and Tuesday before being halted. So, what’s causing the gains? Well, there are a few things…
First off, the Baltic Dry Index is climbing. This index follows the shipping industry and gives those in the industry an idea of how well demand is doing. With the index climbing, demand for shipping is likely to continue climbing, which will be a great thing for DRYS.
Another big factor here is that DRYS has been working on restructuring debts. Recently, investors have been concerned that matured, yet unpaid debt would send the company into the dirt. However, that no longer seems to be the case.
Finally, Donald Trump’s Election as the President of the United States also plays a big role here. The truth is that Trump has explained that he plans on ripping up trade agreements and working out something better that will be good for the US. In doing so, he will likely lift state controlled shipping prices in many areas, leading to more competition, inflation, and better conditions for the shipping industry as a whole, including DryShips.
Halt Is Soon To Be Over
According to recent chatter on social media, DRYS will soon be trading again. After a bit of digging, we were able to confirm that the halt should be lifted today. Some of the rumors say that the halt will be lifted as soon as 10:30.
What We’ll Be Watching Ahead
First and foremost, it will be interesting to see how DRYS trades following the halt. Nonetheless, things are looking good for the shipping industry as a whole, and, for DryShips, that’s a great thing. Nonetheless, we’ll be watching the news and bringing it to you as soon as it breaks!
UPDATE – At 10:30, DRYS opened at around $45 per share. However, within seconds, the stock was halted again due to volatility.
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[Image Courtesy of Wikimedia]