Dow Jones Industrial Average 12151.26 (Down, longest stretch since 2004)
Dryships Inc. (Symbol DRYS, $4.15) is looking good after a week where stocks just got drubbed over and over again. The stock is sitting here with a PE of 4. Dryships is a drybulk shipping and contract drilling company.
DryShips stock shot up Friday after it got the notice of some of the Goldman Sachs folks to give it a nod as an upgrade to "Buy"
Urs Dur of Lazard Capital Markets, in a note back in Dec. 2010 described developments as a “bevy of positive news” from DryShips and agrees with other analysts who told TradeWinds on Friday that Dryships private placement was the first stage of an IPO for Ocean Rig (their drilling operations).
He said: “Given that much of the unresolved financing pressure has been alleviated on Ocean Rig (including the recent announcement of a $325m bridge loan and the recent completion of DryShips’ $350m ATM transaction), and that DryShips has significant built-in growth in a deepwater drilling sector that is firming, we feel that a public spin-off of Ocean Rig from DryShips in the new year is much more likely today.”
I would buy this stock for a trade here and take your profits when you have them. I would expect a 33% return on the trade.
So going forward I will be looking for quality stocks that have been beaten down over the last few weeks, that may be good additions to your portfolio. Onward and upward.
Have a good week and enjoy the summer