May 22, 2012
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 dry bulk shipper DryShips (Nasdaq: DRYS ) jumped 11% in early trading after coverage was initiated by an analyst.
So what: Global Hunter Securities initiated coverage on the company with a buy rating, causing a frenzy in early trading. The euphoria didn't last long, and shares are now up only about 3% on a day when the market is also up nicely.
Now what: At The Motley Fool, we don't take analyst upgrades too seriously. I certainly wouldn't buy into this pop because of an upgrade, and with dry bulk rates still depressed, I would be hesitant buying the stock at any price. The company's biggest asset is a majority stake in Ocean Rig (Nasdaq: ORIG ) , but if you want exposure to that, you should just buy the company's shares instead of DryShips.
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