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) fell 17% today, after the company announced earnings.
So what: Revenue rose 8% in the third quarter, to $342.6 million, helped by drilling unit Ocean Rig (NASDAQ:ORIG), but the company still posted a $51.3 million loss, or $0.13 per share. Analysts had expected revenue of $331.5 million, and a much smaller loss of $0.02 per share.
Now what: Weak shipping rates were blamed for the bad numbers, and the bankruptcy of Overseas Shipholding Group yesterday shows just how bad things are. I covered the struggles of ship owners a few months ago and, unless there's a jump in economic activity or a drop in supply, I don't see the conditions changing. I'm avoiding DryShips right now, and wouldn't consider the stock until dry bulk prices at least double from their current levels.
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