DryShips Inc. (NASDAQ: DRYS) is having an incredibly rough time in the pre-market hours today, and for good reason. In true DRYS fashion, the company announced yet another reverse stock split, causing fear among investors and driving the price of the stock dramatically down. Of course, our partners at Trade Ideas were the first to alert us to the losses. At the moment (8:38), DRYS is trading at $0.57 per share after a loss of $0.26 per share (31.57%) thus far today.
DRYS Announces Reverse Stock Split
As mentioned above, DryShips is off to an incredibly rough start in the pre-market hours this morning after the company announced yet another reverse stock split. The split will be a 1-for-7 split, meaning that for every 7 shares of the company you own now, you will soon own 1 share with 7 times the value.
The reverse split will take effect starting on July 21st, 2017. When this happens, the amount of shares issued and outstanding will fall dramatically. Currently, there are a total of 36,296,095 shares. However, this figure will be reduced to total shares amounting to about 5.2 million.
You Can’t Say I Didn’t Tell You So
The truth of the matter is that I’ve written about DRYS quite often over the past year or so, and for one simple reason. That reason has been to warn investors of the toxic management, toxic financing, and overall toxic situation over at DRYS.
Unfortunately, George Economou has created an interesting system that opens the pathway for his hand to reach deeper and deeper into the pockets of investors. Today’s news is simply another example of what he has done as the CEO of the company.
Finally, I’d like to offer another warning. At the end of the day, this wasn’t the first stupid move that DRYS has made, and it won’t likely be the last. In fact, following the reverse split, chances are that we will see more toxic financing, and I wouldn’t be surprised to see the name Kalani Investments involved in the process. The bottom line here is that you work hard for your money; stop giving it to a company whose shares have fallen 99.9% in just a few simple months. You don’t deserve the losses that DryShips management seems to be shoving down your throat!
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on DRYS. In particular, we’re interested in following the company’s toxic business practices and doing everything we can to warn investors before they get involved in this losing battle. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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