Dryships (DRYS) shares have been exploding to the upside over the past few trading days after the Dry Baltic Index hit the lowest point in years last week. That might be a very bullish signal for contrarian investors, such as myself who believe in the long term fundamentals of this Greek company. A profile on Dryships courtesy of Yahoo Finance: DryShips, Inc., through its subsidiaries, engages in the ownership and operation of drybulk carriers and drilling rigs that operate worldwide. Its drybulk fleet principally carries various drybulk commodities, including bulk items comprising coal, iron ore, and grains; and minor bulk items, such as bauxite, phosphate, fertilizers, and steel products. The company owns and operates a fleet of 37 drybulk carriers comprising 9 Capesize, 26 Panamax, and 2 Supramax with a combined deadweight tonnage of approximately 3.4 million tons; and 12 tankers comprising 6 Suezmax and 6 Aframax with a combined deadweight tonnage of approximately 1.6 million tons. DryShips, Inc., through its subsidiary, Ocean Rig UDW, Inc., also owns and operates 9 offshore ultra deepwater drilling units comprising 2 ultra deepwater semisubmersible drilling rigs and 7 ultra deepwater drillships. The company was founded in 2004 and is based in Athens, Greece.
Dryships has a 74% ownership stake in subsidiary Ocean Rig UDW (ORIG), which signed a huge oil drilling contract today and DRYS reports earnings on Feb 13, 2012. Check out the article by Reuters: UPDATE 2-DryShips unit signs Norwegian rig contract, shares riseat Reuters(Mon 11:54AM EST). I am riding higher the DRYS Feb 2.50 strike Call Options that I purchased for .12 a contract on Friday. As the stock jumps again today, my options contracts are trading up over 175% at .34 cents right now. Wow!!! Keep in mind that this stock currently trades at $2.78. A few years ago DRYS traded at over $120 a share and we were discussing it’s revenue/ earnings growth potential at an Investor Business Daily monthly meet up group at the Charles Schwab (SCHW) headquarters in San Francisco, CA. This stock could trade much higher and I am excited to own Call Options into the earnings report released next week. I am also long shares of the stock for the long term and added to my core position today. Read more at http://www.dryships.com.
Check out the ten day chart on Dryships (DRYS) courtesy of Fidelity Investments: