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: Investors are jumping back on board DryShips (Nasdaq: DRYS ) today after the company reported earnings.
So what: Net voyage revenues fell to $81.7 million from $106.7 million a year earlier, but the company's subsidiary Ocean Rig (Nasdaq: ORIG ) made up the slack with revenues more than doubling to $237.7 million. The company reported a net loss of $6.2 million, or $0.02 per share. On an adjusted basis, the company made a profit of $0.07 per share, in line with estimates.
Now what: The trading action was very unusual today with shares dropping 10% and then rising 10% as the day went on. Dry bulk rates are still low, and I don't see a reason to buy DryShips after reporting another loss. If anything, Ocean Rig is more interesting since it has exposure to the exploding ultra-deepwater drilling market without the exposure to dry bulk shipping.
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