DRYS - reacting to the rising BDI

With the Baltic Dry Index (BDI) rising from the 1200s to the 2000s since August, the shipping companies have likewise jumped, with Dry Ships (DRYS) almost doubling up. DRYS closed the week +1.7% @ $3.78. Near term trend remains starkly bullish, with soft support around $3.70/60.


DRYS, daily

Summary

*first, a few charts on the BDI, which is absolutely important to keep in mind.

BDI, weekly, 3yr

BDI, monthly, 7yr

The first chart more clearly illustrates the recent jump in the BDI, but still..the bigger chart puts things in a rather stark context. The BDI is still over 80% lower than the previous cycle highs of 2007/8.
-

The problem for anyone considering getting involved in DRYS - or most of the other shippers, is that DRYS is still struggling to make a profit.

see key stats @ yahoo! finance

DRYS remains a very speculative stock, and ever since the 2008/9 collapse wave, endless message boards have regularly highlighted it.


DRYS - still in dry dock

When you see DRYS on a monthly chart across the past seven years, it remains a stock that has NEVER even begun to recover/bounce. In many respects, until DRYS can break back into double digits, the stock is indeed still flat lining.


Yet, with the BDI finally starting to increase..perhaps now is the time to keep a more closer eye on DRYS.