Dryships in the World of Research Paper

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The company was also wrestling with a revolving debt issue last year, which helped push management to diversify. (Eden, 2009) the current price of the stock is $5.43. It has a high of $11.48 and a low of $2.72. There are currently 254 million shares outstanding, with a float of 229 million shares. The company is no longer paying a dividend. However, between 2005 and 2008 they were paying a consistent dividend of $.80. The company first went public in 2005. ("Dryships,"2010)

Clearly, when looking at any company, there are a number of different tools which can be used to determine if it is a good investment. One such tool is: to carefully examine the management, their past as well as current marketing / business strategies and to examine the price of the stock in relation to the shares outstanding / dividends. This will provide a general overview of the financial challenges that the company has been facing.
In the case of Dryships, they were first founded in 2004 and went public in 2005. However, during that time, the company has shifted its marketing / business strategy, as it was heavily dependent upon dry bulk trade to China. Then, as the world economy slowed, the company faced a reduction in earnings and a revolving debt issue. This lead to changes within some upper management positions and marketing / business strategies, as the company is focusing on expanding into deep water drilling for oil and natural gas (through the 30% stake in Ocean Rig). While this will not tell you everything that is occurring with the company, it will provide you with a general overview as to what issues the company is currently facing. It is through examining Dryships in this light; that will provide the greatest insights as to what kind of investment.....

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