Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



DryShips Shares Popped: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of DryShips (Nasdaq: DRYS  ) climbed 10% today after Wall Street analyst Goldman Sachs (NYSE: GS  ) upgraded the dry bulk shipper from neutral to buy.

So what: Along with the upgrade, Goldman raised its price target on DryShips to $6, representing a big 57% premium to yesterday's closing price. With the shares having been clobbered about 50% over the past six months, Goldman finds the current valuation just too cheap to ignore and sees "positive risk/reward ahead of the upcoming listing" of its ocean rig unit in the U.S.

Now what: If you believe Goldman's sum-of-the-parts analysis, there should be plenty of upside left in DryShips' shares. Of course, given that dry bulk shippers, as a whole, continue to face a significant glut of new ships, DryShips bulls shouldn't expect a smooth ride up to intrinsic value. In fact, Goldman downgraded Diana Shipping (NYSE: DSX  ) on significant oversupply issues, suggesting that the short term will likely be a very bumpy one. 

Interested in more info on DryShips? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Read/Post Comments (2) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 03, 2011, at 3:37 PM, dontwin wrote:

    Dryships is up not because of their "dryships" but because of their entrance into deep sea drilling rigs! They will be at 15 this time next year!

  • Report this Comment On June 07, 2011, at 3:04 PM, multi007 wrote:

    Hope you're right dontwin...

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1502988, ~/Articles/ArticleHandler.aspx, 10/23/2016 11:53:36 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 3:59 PM
DRYS $0.36 Down -0.03 -7.23%
DryShips CAPS Rating: **
DSX $2.51 Down -0.02 -0.79%
Diana Shipping CAPS Rating: ****
GS $174.67 Up +0.16 +0.09%
Goldman Sachs CAPS Rating: ***