i sold my cash positions last night before close at $5.60 and sold my IRA positions at $5.11 today. Took some nice profits in both and will look to get back in between $4 and $4.50. You had to expect a bad 4th quarter along with every other company out there. With their new drilling contract in place and if they can finalize some of these last waivers, we should be in good shape to ride this up to $10 in a couple of months.
i sold my cash positions last night before close at $5.60 and sold my IRA positions at $5.11 today. Took some nice profits in both and will look to get back in between $4 and $4.50. You had to expect a bad 4th quarter along with every other company out there. With their new drilling contract in place and if they can finalize some of these last waivers, we should be in good shape to ride this up to $10 in a couple of months.
I am not thrilled with the big fat float..if he had just done this 6 months ago the cash ammt would have paid off most of the debt.
I also didnt hear what the proceeds were needed for, but it gives the company enough cash to purchase new ships or at least pay for any and all debt for MANY years forward.
I hate the new float though..
I am not thrilled with the big fat float..if he had just done this 6 months ago the cash ammt would have paid off most of the debt.
I also didnt hear what the proceeds were needed for, but it gives the company enough cash to purchase new ships or at least pay for any and all debt for MANY years forward.
I did not think that today was much of a surprise. I expected the dilution.
Sucks they had to dilute but I'm assuming they are using the proceeds for payments towards the UDW rigs on order.
Was really hoping they'd talk about that more. I thought this conference call was rather uninformative. Leads me to believe this stock is dead for the next few months until any news on Primelead surfaces.
I did not think that today was much of a surprise. I expected the dilution.
Sucks they had to dilute but I'm assuming they are using the proceeds for payments towards the UDW rigs on order.
Was really hoping they'd talk about that more. I thought this conference call was rather uninformative. Leads me to believe this stock is dead for the next few months until any news on Primelead surfaces.
I think for people who own DRYS and thought they'd see $50-$100 need to now take a step back and re-evaluate where this stock could go.
Take the price they expected and divide by 3. So if you thought it was worth $150 with all 6 rigs and the ship deployment you are looking at $50 now. Realistically I am hoping for $20 now.
I think this stock is dead for a while which sucks. Once they announce RIG contracts or the UDW's coming online though that'll send the stock flying.
At rates of $575K a day, $225K operating costs (conservative), one UDW contract is worth about $.85 extra to the EPS over the 153 million shares. So throw 2 contracts in there ($1.70) and slap a multiple of 5 (again conservative) on there and the announcement of two of these contracts for the rigs on order should send this stock up $8.60 to $12 or so (a 3 bagger at the current price which is great).
But again . . . I think that could be 9-12 months off and those rigs aren't even set to come on until late 2010. Again dead money. Those who want to wait could make some money . . . but can't blame others for moving on.
I think for people who own DRYS and thought they'd see $50-$100 need to now take a step back and re-evaluate where this stock could go.
Take the price they expected and divide by 3. So if you thought it was worth $150 with all 6 rigs and the ship deployment you are looking at $50 now. Realistically I am hoping for $20 now.
I think this stock is dead for a while which sucks. Once they announce RIG contracts or the UDW's coming online though that'll send the stock flying.
At rates of $575K a day, $225K operating costs (conservative), one UDW contract is worth about $.85 extra to the EPS over the 153 million shares. So throw 2 contracts in there ($1.70) and slap a multiple of 5 (again conservative) on there and the announcement of two of these contracts for the rigs on order should send this stock up $8.60 to $12 or so (a 3 bagger at the current price which is great).
But again . . . I think that could be 9-12 months off and those rigs aren't even set to come on until late 2010. Again dead money. Those who want to wait could make some money . . . but can't blame others for moving on.
Nice analysis holdem. I got in DRYS earlier this month at 3.60 and I'm seriously considering taking the profits off the table because it wouldn't surprise me in the least to see DRYS back under 4 again in the next month.
Nice analysis holdem. I got in DRYS earlier this month at 3.60 and I'm seriously considering taking the profits off the table because it wouldn't surprise me in the least to see DRYS back under 4 again in the next month.
VH2, my avg $ is over 14 so clearly i'll be holding for awhile, sorry to jump in the drys thread but what r ur projections on FIG, i'm finally in the black on that one and want to hold til it hits 7+...r u taking profits yet?
VH2, my avg $ is over 14 so clearly i'll be holding for awhile, sorry to jump in the drys thread but what r ur projections on FIG, i'm finally in the black on that one and want to hold til it hits 7+...r u taking profits yet?
The banks MUST have put his balls in a vice because I would never have expected that ATM bullshit from George on his own..that float kills the upward boundaries of the stock and it was done at severely depressed prices.
The way I can tell is that all the options and warrants associated with Cardiff were priced over 30 bucks, which tells me George felt the stock was undervalued to that extent..and more. So for him to sell out down here had to be that one bank, maybe DB said if he didnt increase the cash on hand and get rid of the newbuild projects that they would force him to cover the loan, so he had to both scrap the newbuilds and sell at these pathetic prices.
It is his fault though..he gambled (which I like) and made too many related transactions and it cost him.
The only thing that could make this stock fly again is a rebound in the BDI which probably wont happen.
Regardless, the stock is worth a triple from here just based on earnings on hand, even with the bigger float they should make between 3-5 per share if the BDI ever improves.
Part of me would rather he do a 3 for 1 reverse and get the float under control than to suffer with this bloated float.
VH2,
The banks MUST have put his balls in a vice because I would never have expected that ATM bullshit from George on his own..that float kills the upward boundaries of the stock and it was done at severely depressed prices.
The way I can tell is that all the options and warrants associated with Cardiff were priced over 30 bucks, which tells me George felt the stock was undervalued to that extent..and more. So for him to sell out down here had to be that one bank, maybe DB said if he didnt increase the cash on hand and get rid of the newbuild projects that they would force him to cover the loan, so he had to both scrap the newbuilds and sell at these pathetic prices.
It is his fault though..he gambled (which I like) and made too many related transactions and it cost him.
The only thing that could make this stock fly again is a rebound in the BDI which probably wont happen.
Regardless, the stock is worth a triple from here just based on earnings on hand, even with the bigger float they should make between 3-5 per share if the BDI ever improves.
Part of me would rather he do a 3 for 1 reverse and get the float under control than to suffer with this bloated float.
VH2, my avg $ is over 14 so clearly i'll be holding for awhile, sorry to jump in the drys thread but what r ur projections on FIG, i'm finally in the black on that one and want to hold til it hits 7+...r u taking profits yet?
I sold a while ago when it hit $2 . . . I did not sell for Walls game though. Need 400% to win that!
90% return was good enough for me in real life.
Quote Originally Posted by BigBadBlove:
VH2, my avg $ is over 14 so clearly i'll be holding for awhile, sorry to jump in the drys thread but what r ur projections on FIG, i'm finally in the black on that one and want to hold til it hits 7+...r u taking profits yet?
I sold a while ago when it hit $2 . . . I did not sell for Walls game though. Need 400% to win that!
Good day for DRYS . . . don't quite understand the move. Perhaps people are getting in to the stock in anticipation of the 4 rigs coming on in late 2010. Seems awfully early though.
Good day for DRYS . . . don't quite understand the move. Perhaps people are getting in to the stock in anticipation of the 4 rigs coming on in late 2010. Seems awfully early though.
Of course if an industries revenues go away, it would harm a company..all this I knew in the first place and I find it funny how this would be such a shocker or cause to drop the stock this much.
Funny..
Accounting CYA language drops a stock 20%.
Of course if an industries revenues go away, it would harm a company..all this I knew in the first place and I find it funny how this would be such a shocker or cause to drop the stock this much.
Yep..I have to admit if I had known George was going to be forced into floating that many shares I would not have added to my position, even though I am up big on the last buy it pisses me off he did that.
Something tells me there was pressure on him to add to the balance sheet or the bank in question wouldnt go along with the covenant waivers.
VH2,
Yep..I have to admit if I had known George was going to be forced into floating that many shares I would not have added to my position, even though I am up big on the last buy it pisses me off he did that.
Something tells me there was pressure on him to add to the balance sheet or the bank in question wouldnt go along with the covenant waivers.
That doesnt bother me much, the ATM was for that figure and so I expected that it would be used if necessary.
Here is the answer I dont think the company really needed the cash to fund current operations, nor would George have done this in the current environment if he wasnt FORCED to. It is obvious one of the banks told him to either get more cash on the balance sheet relative to debt or they would not go along with the covenent adjustments..
We will
use the net proceeds from the sale of securities offered by this prospectus
supplement for working capital, capital expenditures, repayment of indebtedness,
general corporate purposes and, as needed, to enhance our liquidity and to
assist us in complying with our loan covenants.
VH2,
That doesnt bother me much, the ATM was for that figure and so I expected that it would be used if necessary.
Here is the answer I dont think the company really needed the cash to fund current operations, nor would George have done this in the current environment if he wasnt FORCED to. It is obvious one of the banks told him to either get more cash on the balance sheet relative to debt or they would not go along with the covenent adjustments..
We will
use the net proceeds from the sale of securities offered by this prospectus
supplement for working capital, capital expenditures, repayment of indebtedness,
general corporate purposes and, as needed, to enhance our liquidity and to
assist us in complying with our loan covenants.
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