DryShips (DRYS) Stock: Form 6-K Sends It Skyrocketing


DryShips Inc. (NASDAQ: DRYS)

DryShips has been one of the most interesting stocks to follow as of late, and for good reason. Shortly following the election, shipping companies skyrocketed, as investors were exited about President Trump’s plans. DRYS proved to be the leader of this run. However, since then, the stock has been falling, and last week, it took its most recent hit on allegations of lies to the SEC. Nonetheless, the stock is skyrocketing once again. Below, we’ll talk about the allegations, what we’re seeing from the stock today and why, and what we’ll be watching for ahead.

Update – After hours, a 6-K filing was offered to investors sending the stock skyrocketing. The link to the 6-K is offered in the update below!

DRYS Allegedly Lied To The SEC And Investors

Last week, a report broke that sent DryShips spiraling out of control. Unfortunately, the company may have lied to the SEC several times. Last week, accusations started to come to light that the company was using Panama Paper Proxies as well as their relationships with Canadian officials, who are now being called corrupt, to lie to the SEC. In doing so, the company is said to have filed multiple 6-K filings that are littered with misrepresentations to the SEC and the company’s investors.

Unfortunately, if you dig in deeper, the story quickly goes from bad to worse. In many cases like this, the CEO is not involved and it is hidden from them. However, to make matters worse for the beleaguered shipping company, it seems that the false reports given to the SEC run all the way to the top, with DryShips Inc. CEO George Economou allegedly being heavily involved with the unfaithful SEC dealings.

The Stock Is Climbing Today

While the news surrounding DRYS has been negative as of late, the stock is climbing dramatically today. In fact, the stock even hit the radar designed by our friends at Trade Ideas because of the dramatic climb. At the moment (10:46), DRYS is trading at $2.50 per share after a gain of $0.51 per share (25.63%) thus far today. With no positive news released by or surrounding the company, it is our belief that the gains on the stock are the result of a short squeeze.

This Is A Dangerous Game

If you’re considering investing in DryShips at the moment, you may want to think again. At the end of the day, this scandal is brewing, and if it is proven that the company has been lying to the SEC and its investors, things are going to get ugly very quickly! So, if you’re going to play the game, be prepared for what you’re likely to be dealing with ahead.

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 looking for the response to these allegations, which surprisingly hasn’t been offered yet. We’re also interested in following the progress of investigations and what happens as a result. We’ll keep a close eye on the story and bring the news to you as it comes to us!

Update – Amid the hype surrounding the stock, a new spike just started after hours. The spike can be attributed to this 6-K filing with the SEC. The filing discloses a $200 million fund raising. We’ll continue to keep tabs on the news and bring it to you as it breaks.

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[Image Courtesy of Wikimedia]

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Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at CNAFinanceHelp@gmail.com Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.


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