Dryships, Inc. is a company that would not make it onto my radar, but I wanted to share with you the incredible disaster that has enveloped the poor shareholders of this company and why research/education is always IMPORTANT. There are some good companies that may go through rough patches in share price and then there are bad companies, period.
DRYS, within the last couple of years, has gone through around 7 reverse stock splits! Just completed the last split today. Crazy! Market education explains that reverse stock splits, for the most part, are BAD news. In the case of DRYS, it’s a legal way for the company to cover up the severe stock dilution that’s occurring from the company selling shares, which explains the established downtrend in price.
If you’re considering this stock, I must do my part in warning you to STOP IT!! To those who managed to escape, congrats. It’s got to be brutal for those caught in its jaws while also hilarious to see the near 99% loss of share price value. Reading the severe rage and anger spewing from ‘bag-holders’ on media sites can be a comical getaway. I encourage you to watch this vessel sink from the safety of my other growth stocks and take some lessons in witnessing poor company management!
*July 20 Update*
Reverse split number 8 or so, is being enacted. This 7:1 stock split is again the companies latest attempt to keep their share price above $1 dollar to remain on the Nasdaq market. I expect dilution to continue. Be warned, STAY AWAY!