So next time somebody says that a reverse split will destroy a stock, can we use this as the one time it was ok?
Only if you use it as a blanketing statement saying all reverse splits will be successful. LOOK WHAT HAPPENED TO DRYS, IT'S GOING TO THE MOON.
DRYS is a classic case of the way all financial markets really work; the few managed to "corner the market"; to wear down the majority of public stock holders and convince them to sell. Once they controlled enough of the stock they could limit the supply available for trading and upon a notable news item that gave the public an excuse to buy again, visa vi, the conclusion of the U.S. presidential election, regardless of the outcome by the way, they were able to execute their campaign. But if you listen to the Motley Tools of the Wall Street machine (who are there to help you) you get this kind of tripe: Fueling that run are two drivers. First, the company is actively working with lenders to restructure its bank credit facilities. Three of them have matured, and the company has yet to make final balloon payments, instead suspending principal and interest payments to preserve liquidity. However, the company has been actively selling off vessels to pay down its revolving credit facilities. For example, at the end of October, it announced the sale of five vessels for $29.4 million. Given the steps it is taking to address its credit facilities, there's some growing optimism in the market that DryShips can restructure in a way other than going through bankruptcy. The errors of logic in their above explanation are layered with dishonesty. The error of relying on "fundamentals" for any investment decision is highlighted by this exaggerated example. It is now being pushed back out to the public with careful metering of supply and out of my league; requiring penny stock trading experience, metal, nerves of steel. Gil are you playing it?
This could continue for quite some time as there's no float to short, or even trade for that fact. Would be crazy to try and short.
DRYS SHIP and EGLE. I'm thinking DRYS is topping now. Watching the trades for an hour or so yesterday I could see what I though was the major buyer buying and selling seemingly to himself with a gap of .60 to .70, pretty crazy but that's what it was looking like. Then, a few minutes before close, poof, he was gone. Spread tightened up and support started to weaken. Could have been just an end of day thing. Nothing goes straight up without a reset/consolidation. Eventually they will dilute themselves back to reality, again. imo.
If I had the guts, I would! Maybe something a bit further out, Jan or more, there is no way this holds up for any serious period of time!
It’s not time to sell now. Baltic dry Index up again today. It’s the big clue for Dryships. As long as index goes up, this will go higher
