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What: Well, they did it. After today's initial steep sell-off, the Dow Jones Industrial Average (INDEX: ^DJI) -- and other indices as well -- somehow managed to end the day in the green. But not everyone's smiling. Shareholders of DryShips
So what: Why is DryShips the odd man out? Why is it ever? Just like yesterday, the company remains tarred by its reputation as a "Greek shipper." (Greece, as you may have heard, is having some problems lately.) And as fellow Fool Anders Bylund pointed out yesterday, DryShips' venture into oil drilling with its drillships program is also hurting, as oil prices continue to sink.
Now what: Two months ago, I warned investors that DryShips' earnings weren't all they were cracked up to be, inasmuch as they lacked free cash flow to back them up. Two months later, we see this reflected in a P/E that's doubled even as earnings keep falling. With the company still burning cash, and with no end in sight, I see little reason for investors to board the stock today. Stay away.
Is DryShips is still ship-shape? Double-check your assumptions. Add DryShips to your Fool Watchlist, and find out what's really going on.
Fool contributor Rich Smith does not own (or short) shares of any company named above. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.