DRYS - the sinking ship

Whilst the main market managed some mixed gains, there was further weakness in Dry Ships (DRYS), hitting a new multi-year low of $1.32, but settling u/c @ $1.47. Near term outlook offers a bounce (along with main market), the next obvious target is $1.00.


DRYS, daily

DRYS, weekly

Summary

Yesterdays news that DRYS had decided to cancel a debt auction has only added to depressing outlook. The lack of new incoming funds was a major disappointment to the market, which slammed the stock around -20% lower.

Today was not particularly much better, with declines of around -5% in early morning... with a latter day bounce that only managed to claw back to evens.
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Overall, DRYS looks set for continued multi-month declines, and the $1.00 threshold now looks a valid target - not least if the broader market slips to sp'1700/1600 within the next few months.

With the BDI remaining in the low 1000s, the shippers are all having serious trouble in trying to stay afloat. Considering this is supposed to be a 'growing economy', DRYS is really struggling.

If the global economy has even a moderate recession within the next year or two, DRYS looks in trouble of sinking to the ocean floor. It would be a great shame, having followed the stock since 2008.