- DryShips (NASDAQ:DRYS) remains halted after soaring 1,500% since the Nov. 8 election and soaring another 40%-plus in the premarket; meanwhile, other shipping stocks continue to race higher, with some halted during the day.
- Until last week's Trump election victory, it had been a dismal year for dry bulk shippers, with weak Chinese demand for commodities punishing the industry to the point that companies were forced to idle ships and several operators filed for bankruptcy protection; DRYS shares had sunk 98% YTD by the close on election day.
- A popular view is that DRYS’ surge is the work of a short squeeze, but Ihor Dusaniwsky, head of research at S3 Partners, says that with only ~1M shares outstanding, there are not enough to go around for short sellers to borrow; he says the rally is as simple as sudden, huge demand running into limited supply.
- Wells Fargo (NYSE:WFC)'s Michael Webber cautions that the huge rally in dry bulk and container stocks may not last must longer, as no fundamental move has supported the degree of gains.
- Related tickers: SALT, DCIX, ESEA, TOPS, SHIP, EGLE, SINO, GLBS
Original article