Boston, MA 10/14/2013 (wallstreetpr) – The bulk shipping sectors is showing positive recovery signs. The rates have continued their rise after several years of weak rates which have since forced several bulk shipping companies out of business. DryShips Inc. (NASDAQ:DRYS) has survived these market beatings and now the rising shipping rates are gradually putting it a good territory.
But coming from such a poor market, DRYS’s future bears a lot of anticipations which means the company’s management have to make good use of the prevailing market situation to make up for the lost years.
The company now has a market cap of $1.38 billion as of October 11. DRYS has debt hole of $5.02 in its balance sheet. Its price-book ratio is 0.51 while price-sales ratio stands at 1.07.
Is there something that makes this stock valuable for investment? DRYS has several strengths. The company has a diversified bulk shipping fleet which makes it able to support a variety of ships. The classes of ships offered by DRYS include Aframax, Panamax, Suezmax, Supramax, Capesize and very large ore carriers. This means that as bulk shipping sector gains momentum after years of a lull, it is well prepared to cope with surge in shipping demand and thus better revenue collection.
In the market, DRYS operates modern fleet with the latest having been completed in January this year. Both its tanker and drybulk segments have modern facilities which beat its rivals in the business.
The company also has an upside potential with its 45% fleet in charter coverage for this year. These deals are coming to close late this year and early next year. It means that DRYS is well positioned to capitalize on the rising current of bulk shipping rates.
DRYS is a holding company with interest in bulk ocean transportation. It offers both crude oil tanker transportation and drybulk. The company also owns and operates ultra-deepwater drilling units.