This entry was posted on Thursday, February 14th, 2008 at 10:01 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
As Robert guessed, the lower chart below was DRYS. It was at ~77 at the time of the posting and this was in IBD tonight:
10 The Greek dry-bulk carrier said profit jumped more than fivefold to $4.50 a share ex items, beating views by 46 cents. Revenue almost tripled to $233.4 mil, above views. After a Nov. to mid-Jan. plunge, shipping firms have been rebounding as several long-term contracts hit the market (NYSE:BHP - News). DryShips (NasdaqGS:DRYS - News) expects to have 17% more fleet operating days in ‘08. Its shares rose 7% after hours.
Yahoo is showing it trading @ ~91+ right now. Fortunately, I closed my last DRYS short at the close on 2/6 so I avoided this runup. Based on these strong earnings (I’m assuming guidance was strong), I don’t think it would be an attractive short for awhile.
- John
February 15th, 2008 at 12:08 pm
Way too early to tell, but I continue to believe that there is money to made on the short side in DRYS based on today’s reaction.
Although, I would agree that there are much easier pickings at this time. Too much risk w/ DRYS.
What type of analysis did you use to short DRYS? Was it a system trade? What made you decide to exist on the 6th? I am curious. Thanks in advance.