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Brian Lynch

$0.77
Cranbury, NJ
5/14/08
$1,064,236.18

13
02/27/09
7.3%
6.4%
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Stock Pick by Brian Lynch

DRYS: A definite BUY

Start trading DRYS with real money!

Rate Analysis
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6 ratings
Posted 311 days ago on 1/14/09

DRYS will go UP
$105.00 on 1/14/10 (53 days left)
$6.29 (-57.70% from time of market call)

I feel DRYS is a definite buy. According to caps.fool.com, "The Company owns and operates fleets. The company's fleet carries various drybulk commodities, including coal, iron ore, and grains, bauxite, phosphate, fertilizers and steel products." DRYS has a very high EPS and a very, very low P/E, because 8 months ago, DRYS was over 100 dollars. Its earnings have doubled over the past year (150 mil in Q3 of 2007 to 329mil in Q3 of '08), but the share price dropped 97.4% ($116 to $3) before rebounding to the mid teens. This stock has decreased massively, but the company continues to perform as it had a year ago. Now that the cost of oil is greatly reduced from its summertime high of over $150 a barrel, DRY's expenses are lower. Thus I see no reason that Dryships inc. should not climb back to three digits in the next 4-5 quarters.

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Comments

Posted 5/4/2009, 6:30 pm

It's Coming Back!!! 105 is probably too drastic, but 20 might not be...

Posted 1/20/2009, 9:55 am

eh why has the earnings incresed then??

Posted 1/16/2009, 8:36 pm

Very unrealistic target.

Posted 1/16/2009, 10:58 am

Sorry, shipping rates implied by Baltic Dry Index: http://www.investmenttools.com

Posted 1/16/2009, 10:57 am

While it is true that DRYS owns a fleet of ships and is currently trading at about 2/3 tangible book value, their earning power has nearly disappeared. What they charge for shipping is down 90% since the Summer, making shipping barely profitable. Looking at the income statement, their revenue is apx. 330M and COGS is 52M. If their revenue goes down by 90% they will swing to a loss.
You can see more on my investment strategy at indexbeating.com

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