DryShips Inc. (NASDAQ:DRYS) Sinks 15% During Trading Last Week


Dallas, Texas 10/24/2013 (Financialstrend) – DryShips Inc. (NASDAQ:DRYS) is a Greece based shipping services company with a market cap of $1.12 billion market capitalization. During trading on October 23, the stock saw its market value go down by 5.6%. This down ward trend is a continuation of 15.75% depreciation in its market price over the past week. Readers should note that in the past one month the stock of this small capped shipping company has posted close to 19% of its valuation.

This dip in the prospects of this shipping firm has corresponded with the big drop in the per day rentals that these ship operating companies are able to charge its cargo customers. The dry bulk carriers have been hit hard in the sudden change of fortunes in their industry. Just three weeks back the dry cargo shipping transport sector had breathed a sigh of relief when it daily revenue generation had peaked at $42,211 per day. Since then the average revenue has come down by close to $14,000 per day to settle at $28,000 daily revenue. The dry bulk carrier index is trading 6% down in the past week and is trading at 1878 points. This has been a result of almost all bulk carriers seeing a step reduction in their stock value. Along with DRYS, GNK and EGLE are the stock which saw its value go down 10% in a day.

The shipping company has managed to post sales of $1.28 billion over the last 12 months with a net loss of $316 million in the same period. Its sales on a quarter on quarter basis remained stagnant with profit margins has plummeted by 24% in the same period. At these times of low potential being seen from the sector the analyst have downgraded the price target for the company from its current trading price of $2.91 to $2.53.