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The company was also wrestling with a revolving debt issue last year, which helped push management to diversify. (Eden, 2009) the current price of the stock is $5.43. It has a high of $11.48 and a low of $2.72. There are currently 254 million shares outstanding, with a float of 229 million shares. The company is no longer paying a dividend. However, between 2005 and 2008 they were paying a consistent dividend of $.80. The company first went public in 2005. ("Dryships,"2010)
Clearly, when looking at any company, there are a number of different tools which can be used to determine if it is a good investment. One such tool is: to carefully examine the management, their past as well as current marketing / business strategies and to examine the price of the stock in relation to the shares outstanding / dividends. This will provide a general overview of the financial challenges that the company has been facing. In the case of Dryships, they were first founded in 2004 and went public in 2005. However, during that time, the company has shifted its marketing / business strategy, as it was...
Then, as the world economy slowed, the company faced a reduction in earnings and a revolving debt issue. This lead to changes within some upper management positions and marketing / business strategies, as the company is focusing on expanding into deep water drilling for oil and natural gas (through the 30% stake in Ocean Rig). While this will not tell you everything that is occurring with the company, it will provide you with a general overview as to what issues the company is currently facing. It is through examining Dryships in this light; that will provide the greatest insights as to what kind of investment opportunity it presents.
Bibliography
Dryships Inc. (2010). Retrieved February 23, 2010 from Dryships website:
http://www.dryships.com/
Dryships. (2010). Retrieved February 23, 2010 from Yahoo Finance website:
http://finance.yahoo.com/q/pr?s=DRYS
Eden, S. (2009, October 20). Dryships Drill Rigs: The Best in a Class of One. Retrieved
February…
Bibliography
Dryships Inc. (2010). Retrieved February 23, 2010 from Dryships website:
http://www.dryships.com/
Dryships. (2010). Retrieved February 23, 2010 from Yahoo Finance website:
http://finance.yahoo.com/q/pr?s=DRYS
February 23, 2010 from the Street.com website: http://www.thestreet.com/print/story/10614080.html
They also have invested heavily in a number of deep sea exploration rigs / submarines. These two different businesses that Dryships are involved in, have allowed them to be more diversified than their competitors. This means that when the economy is expanding, the company will benefit from being involved in a number of different businesses. Then during times of economic contraction, these businesses help to protect the company, against
85). Newly independent countries joined in the shipping industry as a way of demonstrating their economic independence, leading to an increase in the number of open registers as owners in the traditional maritime countries could now register in countries with less demanding tax laws and lower costs for workers. Shipbuilding, which had long been dominated by Europe and North America, moved instead to East Asia. Other changes also took place