Market celebrated Bad Bank idea.....by closing higher near HIGHS of the day....
Stimulus package passed the House without a single vote from Republicans.....
VIX closed @ 39.66.....
Futures after fair value are down slightly....
DRYS down AH 24% on breach of SOME loan covenants...
XLF had a record volume day 312+ million share day....
BLOG does NOT give buy or sell.
Saleem
HELLO
ReplyDeleteNews on DRYS
Titled: DryShips (DRYS) Disclosed of Covenant Breach, In Talks with Lenders
http://www.streetinsider.com/Corporate+N...
Some thoughts on DSX:
ReplyDeleteI don't know what's worse for DRYS, the massive dilution or the breach of loan covenants. WIth the new 500 million offering, and correct me if I'm wrong, you're looking at well over 120 million shares outstanding. That would immediately re-evaluate DRYS pps to 1/3 of what it is now.
As for DSX, this is not even a remote possibility as all their ships are paid for. Yes, they did a share offering a while back but it was to acquire assets, DRYS on the other hand is offering massive shares just to try and survive and deal with their massive debt problem. They could potentially lose hundreds of millions of dollars with all the cancellations and UDW business now potentially in peril.
While some criticized DSX for offering shares to expand their fleet, this is now proving to have been a brilliant move because now they have low debt and will retain all cash flow moving forward (until they reinstate dividends) and by taking that approach are highly buffered from the shipping downturn and even the lowest of their shipping rates are still bringing cash into the company and that's key during a global crisis as we are seeing.
Hi Madmax,
ReplyDeleteThanks for your input about DRYS & DSX.....useful analysis.
Saleem
SALEEM
ReplyDeleteAAPL may close green today
Financials are off a good bit 3%...
My monsanto is strong today dunno why?
Cheers to all Peace
Hi Madmax,
ReplyDeleteAAPL is a better buy than RIMM.
GREEN is GOOD !!!!
Saleem