Home Business DryShips Inc. (NASDAQ:DRYS) Touts $103.8 Million Backlog

DryShips Inc. (NASDAQ:DRYS) Touts $103.8 Million Backlog

SHARE
Concept of savings : Coins, glasses, calculator and pen on savings account passbook

DryShips Inc. (NASDAQ:DRYS)

Shares of DryShips Inc.(NASDAQ:DRYS) gained 2.28% after the diversified owner of ocean-going cargo vessels confirmed that its third Very Large Gas Carrier has commenced a time charter to a major oil trading company. The shipping company expects total gross backlog of up to $103.8 million from the time charter.

DryShips Inc.(NASDAQ:DRYS)

DRYS Stock Performance

Since the start of the year, the company has taken delivery of 16 vessels. Plans are already underway to take delivery of one more at the beginning of next year. Growing demand for the company’s fleet of vessels has helped strengthen investor confidence in recent months.

DryShips Inc. (NASDAQ:DRYS) has gained more than 65% in market value over the past month, thanks to a combination of factors. The stock is currently trading in an uptrend even though it has lost a good chunk of its value since the start of the year.

One of the reasons the stock is ticking higher is the company’s decision to curb dilutive stock sales and focus on increasing shareholder value. The Chief Executive Officer, George Economou, has agreed not to sell any shares for at least six months – a move that has gone down well with investors.

Increasing Shipping Rates

The Chief Executive Officer is putting his own money, $99.2 million, on the line. That move appears to have excited investors. In addition to insider buying, DryShips Inc. (NASDAQ:DRYS) has also benefited a great deal from continued improvement of the Baltic Dry Index. Data compiled by Bloomberg indicates that the index rose from around 1,300 to more than 1,550, last month, an indication of an increase in the rates that ships charge to move cargo.

Increase in BDI index suggests that DryShips Inc. (NASDAQ:DRYS) is on course to collect higher charter rates from its dry bulk vessels which should lead to more profits. Insider buying coupled with improving shipping rates is already fuelling speculation that the stock could be trading at a discount given the improving fundamentals.

However, some investors remain skeptical, on concerns that current rates are volatile and could drop, should the global economy continue to experience a slowdown. A decline in shopping rates could result in DryShips giving back a good chunk of gains accrued in recent months.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $DRYS and receive breaking news on other hot stocks by signing up for our free newsletter!

LEAVE A REPLY