DryShips Inc.  (DRYS)     Rate DRYS  -  Discuss DRYS  -  Add to Watch List        

Relative to its industry, DRYS is extremely undervalued.  DRYS's projected PE is only 5.4x while its industry's projected PE is 10.1x...implying that this stock should be $140 (so a $100 projected stock price is conservative)...the PEG story is even more severe, with an implied earnings growth rate of 108%...DRYS has a PEG of 0.05 while the industry is trading at 0.85...for some reason this stock is not being given credit for the growth that analysts are predicting...(the implied, projected stock price using PEG is even higher, which just illustrates the point)...here is the analysis:

Within the last two weeks, both TheStreet.Com and Motley Fool have come out with articles recommending the purchase of shipping stocks. The recent surge in the Baltic Dry Index is certainly an excellent reason. Since the low of this year, the BCI has surged from around $80,000 to $230,000+. The BPI has surged from around $40,000 to $80,000+. The BSI has surged from around $40,000 to $66,000+. The BCI has surpassed its 2007 high. The BPI and the BSI are nearing their 2007 highs. The shipping stocks are still significantly below their 2007 highs. The experts are predicting the Baltic Dry ind

Given the uncertainty of the domestic economy, one industry worth considering investing in is commercial shipping. Shipping is the primary means of international transportation of any essential raw material or finished good. Approximately 80% of the cargo and almost 100% of hydrocarbons moved today is by water. The global commercial shipping industry can be classified into the following categories: 

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When I first wrote about Dryships (DRYS), the largest publicly traded dry bulk shipping stock in the world, it was sitting at 65 back in February of this year. <!---->I wrote it was the most undervalued stock in the market. It had a PE of 3 or 4, 658% earnings growth, and an extraordinary ROE. The stock just sat there. I wrote article after article about DRYS highlighting the rising Baltic Dry Index, DRYS’s exposure to the strong spot market, the increasing value of its fleet, its entry into ultra deep oil drilling. I delivered a challenge to the investment community to find a company

DryShips (DRYS) along with LDK Solar (LDK) are probably the 2 most "controversial" companies we've owned - well maybe along with Crocs (CROX). Of the 3, we only own DryShips (DRYS) as of yesterday, and earlier this week the company reported yet another stellar quarter.

Filed under: Newsletters, Commodities, Oil, Agriculture, Stocks to Buy, Green Stocks

Peter Way selects his buys by following the trading activity of block traders -- those making large, million dollar bets. Here's the latest from his Block Trader Oil & Gold Monitor.

"The volume stock market liquidity-providers are hedging their necessary position risks in ways that foretell declining oil stock prices. Their records on such outlooks in the past are pretty good, so pay attention.

"The million-dollar market-makers are not always right, and here they tend to be a bit early, but it's obvious the

Beam me up Scotti! Wouldn't it be nice to beam up a 100 million metric tons of coal, steel, wheat, copper or any other commodity from here to say China, or India, or Brazil? Well, technology is not there yet! The way this stuff is transported from producers to consumers overseas is mainly by huge ocean going vessels, marine tankers and they are busy these days carrying over huge amounts of every commodity to countries where demand is outstripping supply as every day goes by.

Only a decade ago Chinese were riding bicycles and wearing grey uniforms, happy to have a bowl of rice o

Bears have hammered the dry bulk sector for last 6+ months, mainly for being:<!--more-->

- At its all time cyclical peak
- Soon to suffer from overcapacity on new ship builds
- Global economy entering into recession
- Bulk freight index decline showing lack of pricing power
- Overlevered

• EXM will become the world's largest drybulk shipper, with 47 ships compared to Navios' 38 and Dryships' 36.
• EXM has 8 newbuilds which will be delivered between 2008-2010. All are capesize (largest size with the highest rates). EXM has a 100% interest in 1, a 42.8% interest in another, and a 50% interest in the remaining 6.
• Fixed charter rates will decline from 78% in 2008, to 57% in 2009, to 46% in 2010. The fixed charters provide securi