Friday, November 20, 2009

DryShips Huge Overhang (DRYS)

DryShips Inc. (NASDAQ: DRYS) priced and increased the size of its prior announced offering from $300 million to $400 million in convertible notes issued at PAR with an interest rate of 5% and with an initial conversion price for the convertible notes of $7.19 per share.  In short, overhang and dilution.  That could unload another 55 million shares equivalent or so if this stock rallies again.  DryShips shares are down almost 4% at $6.28 at 8:34 AM EST on 1.25 million shares.  Average volume is almost 25 million shares.  We won’t bother with a 52-week range because you already know this one is the king of volatility.

JON OGG


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