A Growing Divide: Wall Street vs. Dry Bulk Shippers

While many Wall Street analysts have been forecasting a coming rebound in the dry bulk shipping industry, and the Capital Link Dry Bulk Index is up approximately 33% year to date, the shipping industry itself tells a very different story about the hardships it is facing. In this video, Motley Fool industrials analyst Blake Bos discusses an article by Jay Goodgal on gCaptain.com, which stresses coming difficulties for the industry in Asia as a whole -- and China particularly -- and problems with oversupply and decreased demand. Blake further stresses the industry's difficulties by taking a look at DryShips (NASDAQ: DRYS  ) , and its concern-inducing new dilutive equity raise.

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  • Report this Comment On October 07, 2013, at 8:13 PM, imacg5 wrote:

    Actually, outstanding shares at DRYS are up over the last six years from 33 million share in 2007, to 478 million after this offering.

  • Report this Comment On October 08, 2013, at 1:09 PM, TMFBos wrote:

    @ imacq5

    You are correct using 2007 share numbers, but that would be 6.5 years of results (2007,2008,2009,2010,2011,2012,2013). Although 2013 hasn't quite ended yet, so I was arguably incorrect in my 163% increase in 6 years. It should have bee 5.5 years.

    Either way you shake a stick at it, it's ridiculous amount of dilution and another sign of how unfriendly the company is to shareholders. If you ever want to really scoff at an annual report, look at DRYS's and search for the word related party.

    Cheers,

    Blake

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