Pre-Market Volume Spike: DryShips, A Tanker (DRYS)

Posted in pre-market 
January 29th, 2009

DryShips, Inc. (NASDAQ: DRYS) is seeing its shares get killed like its ships are sinking on the high seas.  Shares are down a sharp 25% to $9.10 in active pre-market trading.  Oppenheimer downgraded the stock this morning to an “Underperform” rating.  It appears that the shipper is now outside of some of iuts debt covenants and there are fears that it will have to sell stock to raise cash.  Oppenheimer said “up to $500M worth of stock” is what may be needed.  It could cancel two drill ship newbuildings or its banks could agree to slower debt repayment, but those are both speculation rather than meat.  We have already seen more than 1.37 million shares as of 8:55 AM EST.

52-week trading range $3.04 to $116.43

Jon C. Ogg
January 29, 2009

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