http://blogmybrain.com/2009/04/27/stock-pick-dryships-inc-drys/ This blog is the blueprint of the intellectual development of my brain Tue, 07 Feb 2012 09:45:19 +0000 http://wordpress.org/?v=2.2.2 http://blogmybrain.com/2009/04/27/stock-pick-dryships-inc-drys/#comment-176 admin Tue, 28 Apr 2009 14:09:08 +0000 http://blogmybrain.com/2009/04/27/stock-pick-dryships-inc-drys/#comment-176 Dryships' pricing level for its unchartered ships are tied to the Baltic Dry Index (BDI), which has almost 100% correlation to commodity (grain, iron ore, coal, etc) prices. As regard to the competition, there are a lot of new builds as you said. However, there are also a lot of canceled orders and ship scrapping as companies are having difficulties financing those ships. The ship-building industry is in shambles because of it. If there are tons of ships being built, wouldn't you expect shipyards to flourish instead of suffering? Dryships’ pricing level for its unchartered ships are tied to the Baltic Dry Index (BDI), which has almost 100% correlation to commodity (grain, iron ore, coal, etc) prices. As regard to the competition, there are a lot of new builds as you said. However, there are also a lot of canceled orders and ship scrapping as companies are having difficulties financing those ships. The ship-building industry is in shambles because of it. If there are tons of ships being built, wouldn’t you expect shipyards to flourish instead of suffering?

]]> http://blogmybrain.com/2009/04/27/stock-pick-dryships-inc-drys/#comment-175 Tom Ski Tue, 28 Apr 2009 05:38:53 +0000 http://blogmybrain.com/2009/04/27/stock-pick-dryships-inc-drys/#comment-175 Dryships is in the shipping business not the commodity business. They will have competition from other shipping companies for cargos. The world order book for new builds is overflowing and this iron will have to be accounted for before indexes move appreciably up. Dryships is in the shipping business not the commodity business. They will have competition from other shipping companies for cargos. The world order book for new builds is overflowing and this iron will have to be accounted for before indexes move appreciably up.

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