How low will DRYS go?

Question

thinking of buying into this stock, all the way down to 2.75 currently. Just curious how much lower you guys think this will go? It seems like wallstreet is the expert on this, so how low?

sean2114 · Answer

thinking of buying into this stock, all the way down to 2.75 currently. Just curious how much lower you guys think this will go? It seems like wallstreet is the expert on this, so how low?

LeRinkRat · Answer

I bot 3k @ 3.02 yesterday BUT only went the 3k because I had a gut feeling it could go lower just on momentum. kind of floundered around today even when the market rallied midday. &#xD;&#xA; &#xD;&#xA;maybe time to nibbel BUT overall market conditions could still take it to $2 or lower.

sean2114 · Answer

insane what is going on here, GE below $7 dollars a share, G freakin E. i bought in at 8.80 two weeks ago.

VirginiaHoldem2 · Answer

If DRYS inks one of these for their RIGS on order the stock will FLY.

That is why I still hold this pig. If you believe that DRYS will eventually get 2 or maybe all 4 of the RIGS on order and secure deals like this then $2.75 is a bargain. I believe the shelf offering is going towards the RIGS.

https://www.rigzone.com/news/article.asp?a_id=73530

Copied from another board analysis on this deal and what it "could" mean to DRYS.

Great news. They both are drillship very much the same as the ones being built by Samsung for DRYS. Both are12,000 ft capable, drilling depth to 40,000 ft, dynamically positioned drillships. The first is due for delivery in Q4 2010, just like on of the Cardiff rigs, and it is getting $600k per day for 5 years. $1.1 billion contract value. The other, due for delivery in Q3 2011, as is the DRYS rigs, is getting an 8 yr contract with PBR at $550k per day, contract value of $1.6 billion.

With 4 rigs coming in the late 2010 to Q3 2011 range, and contracts of with the strength of these being signed in this environment, the likelihood and prospects for the Primelead segment of DRYS becomes compelling. On the strength of a contract such as the 8 yr with Petrobras, any bank would finance all the rigs. IF there are announcements of contracts such as these coming, the clouds surrounding DRYS would all be gone. Completely.

BountyHunt · Answer

Back to my dividend question. With the current value of DRYS the dividend is 29%. What are the chances that this dividend gets cut and how low would that take DRYS?

Wake2002 · Answer

[Quote: Originally Posted by BountyHunt] &#xD;&#xA;&#xD;&#xA;Back to my dividend question. With the current value of DRYS the dividend is 29%. What are the chances that this dividend gets cut and how low would that take DRYS? [/Quote]&#xD;&#xA;They suspended the dividend over a month ago.  Won&#x27;t see this thing pay a dividend for a long time

WinLoseorDraw · Answer

this stock is way way over sold. $2.75 is a great price. starting a position here would be a safe bet. if your looking to hold for a few months than you will be reward very nicely. @ this price it will be a 5 bagger by end of this year. i want to say it will be a 10 bagger from this price but 5 bagger is for sure.

buying drys at this price is stealing.

IronCobra · Answer

There&#x27;s definitly more experienced investers then me around here but personally I don&#x27;t see how this thing gets to five or ten times this price without an overall market recovery and that&#x27;s not likely at least this year. Countless number of great companies are getting absolutely hammered because investers feel safer with cash so how will DRYS be any different? $2.75 looks atractive but so did $4 and $3. Personally I&#x27;d rather by at $5 on the way to $10 then at $2.75 on the way to $1.50.

LeRinkRat · Answer

Personally I&#x27;d rather by at $5 on the way to $10 then at $2.75 on the way to $1.50.&#xD;&#xA; &#xD;&#xA;very SMART trading philosophy &#xD;&#xA; &#xD;&#xA;DID have a pretty big percentage bounce off that low yesterday though. with almost 14% short you can get "scare da bear" at any time on any good news down here.

wallstreetcappers · Answer

Good post VH2,At this price, anything under 30 bucks, it is 100% ignoring the drilling entity and the earnings potential.I want to hear the dilution info..the IF and WHY of the transaction..if it is accretive and adds HUGE value that is fine,but if it was a bank scare tactic I wont be happy.3.70 is a joke, this move is nothing compared to the real value of the company.

WinLoseorDraw · Answer

Iron

maybe studying what DRYS business is would help you better understand. its business is mostly dependent on china. DRYS makes a lot of money from its business. US stocks that are beat down are either banks, or have risk from financial activities, or have high amounts of debts. you add those to the usa looks like its heading to 10% un-employment thats why those are hammered down. DRYS is not in their group but the market has treated them like they are and they are wrong. the ocean rig business is worth atleast 5 times the current stock price.

WinLoseorDraw · Answer

Personally I&#x27;d rather by at $5 on the way to $10 then at $2.75 on the way to $1.50.thats not smart, thats not even realistic. how do you know that if it goes to $5 it&#x27;s going to $10 ?? it could hit $5 lose steam drop again and then make another run up so you rather pay $5 have it go to 2.75 again. could well happen to re-test its lows ??i have never heard of buy higher, sell even higher. Buy low sell high is phrase isnt it ?   it was a good deal @5 and @4   below 3 is a steal.

wallstreetcappers · Answer

Rat has a good point WLD, he is saying buy the stock on an uptrend rather than trying to pick a bottom.Speaking of bottoms, the financials keep selling off..

WinLoseorDraw · Answer

well today was an uptrend. i wouldn&#x27;t buy into it. i think we will sell off tomorrow.  I don&#x27;t see DRYS going below $2  thats my point. 2.75 is a great entry point.

LeRinkRat · Answer

i have never heard of buy higher, sell even higher.&#xD;&#xA; &#xD;&#xA;then you obviously haven&#x27;t done much trading. walls has it correct. HOW many people tried to pick a bottom in the likes of LVS, WYNN and esp MGM lately only to get squished by a falling safe? they may all recover sometime in the future BUT people will suffer a lot of pain in the meantime AND they could all end up like most of the internet stocks from the late 90&#x27;s that NEVER recovered. &#xD;&#xA; &#xD;&#xA;the main reason I took a small position in DRYS the other day was the percentage of shorts in the stock AND that it&#x27;s been volitile as all hell. hopefully this move will run some of those shorts in.

Vermeer · Answer

As above...as I recall, "It is never too high to buy and never too low to sell" was a maxim I got outta Stock Operator I also constantly remind myself that the first 1/8 or last 1/8 is usually the most expensive. Why pick an absolute bottom when there are plenty of other people who want those bragging rights?? And that is all they are, bragging rights. Once the breakout is established, there is plenty of time to join the ride up (or down if you are shorting)

IronCobra · Answer

[Quote: Originally Posted by WinLoseorDraw] Iron  maybe studying what DRYS business is would help you better understand.  its business is mostly dependent on china. DRYS makes a lot of money from its business. US stocks that are beat down are either banks, or have risk from financial activities, or have high amounts of debts. you add those to the usa looks like its heading to 10% un-employment thats why those are hammered down. DRYS is not in their group but the market has treated them like they are and they are wrong. the ocean rig business is worth atleast 5 times the current stock price. &#xD;&#xA;[/Quote]You&#x27;re kind of making my point. The market is treating them like everything else, I agree its wrong but there&#x27;s nothing to indicate it won&#x27;t continue. I&#x27;m just saying I would hold off until the markets start to come back, it will still be undervalued at a slightly higher price.

LeRinkRat · Answer

there is plenty of time to join the ride up (or down if you are shorting)

VirginiaHoldem2 · Answer

Up to $4.20 in after hours

sean2114 · Answer

[Quote: Originally Posted by VirginiaHoldem2] Up to $4.20 in after hours &#xD;&#xA;&#xD;&#xA;[/Quote]&#xD;&#xA;i saw, i wish i would have pulled the trigger yesterday, i would be up 70%

Sherman79 · Answer

[Quote: Originally Posted by sean2114] &#xD;&#xA;&#xD;&#xA;i saw, i wish i would have pulled the trigger yesterday, i would be up 70% &#xD;&#xA;[/Quote]&#xD;&#xA;Me too... I am in at $3.80 and told myself when it went down to $3 that i would buy in if it went to $2.75.  Well it went down so fsat that i was waiting for $2.50....well you seen the rest of the story today.   Needless to say, im still glad that i didnt rebuy....yeah, shoulda coulda woulda, but my money market is tied up in stocks and i didnt want to reallly add more money from my savings

LeRinkRat · Answer

well that&#x27;s why I took a small position around $3. in retro you always wish you had more BUT with the overall market it very well could have gone to $2.&#xD;&#xA; &#xD;&#xA;hopefully it, and the rest of the market, keeps going north tomarrow BUT I just bought it for a trade and first sign of any retrace, I will blow it out.

sean2114 · Answer

[Quote: Originally Posted by Sherman79] &#xD;&#xA;&#xD;&#xA;Me too... I am in at $3.80 and told myself when it went down to $3 that i would buy in if it went to $2.75.  Well it went down so fsat that i was waiting for $2.50....well you seen the rest of the story today.   Needless to say, im still glad that i didnt rebuy....yeah, shoulda coulda woulda, but my money market is tied up in stocks and i didnt want to reallly add more money from my savings&#xD;&#xA;[/Quote]&#xD;&#xA;pretty much the exact same situation here, i didn&#x27;t want to dip into my savings to buy more stock, i am maxed out in stock

WinLoseorDraw · Answer

well i sold 5k shares today at the close. figured it would gap down tomorrow . then i could get my 5k shares back + a free 1k ,but after news of china's extra stimulus adding on the buying pressure afterhours i think i will be buying back tomorrow and be paying 50 cents more per share. buts ok cause I'm still holding more of it so let er run up tomorrow.

GL everyone this should be a wild ride to end the week.

Sherman79 · Answer

there you go. Thank GM for fucking up what could have been a good day.....well at least the opening anyways

How low will DRYS go?

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