Friday, November 21, 2008


I found an article called "The Golden Fleece", written in 2005 regarding the issuing of Dryships stock.

It starts out like this:

Dryships’ Debut Shows Speculation,Liquidity Trumping Experience
“It was surreal. When someone asked why he was doing the deal, here–now, he actually said, basically, ‘Because Americans are the dumbest investors around, and there’s lots of liquidity in this market.’”

If you don't own DryShips stock, read the article. It is quite amusing.
If you do own Dryships, well, you might want to skip it.

When I read the comments posted on Google financial, concerning this stock, I too question the intelligence of American investors.

I have looked at the reports filed with the SEC by Dryships, but honestly, I can't figure much out. I don't know at what values they have the ships declared. If they valued them high, and borrowed against them, then it's going to get pretty bad.

If they valued them pretty much at cost or market when the stock went public, and haven't increased their value on the books, they might be able to stick it out over the next year.

Of course, don't forget, there is always the chance this stock could go down to pennies and someone buy out the company, leaving the shareholders with very little.

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