DRYS Update

This stock has had absolutely terrible price action recently. It has "tanked" recently from the mid-20s to now below $10.

The stock, in my opinion, primarily has been butchered this week because of language in a filing the company issued saying they are registering 25mm shares for an upcoming offering. The language, used in the Risks section, specifically stated "If we are not able to comply with our loan covenants and our lenders chose to accelerate our indebtedness and foreclose their liens, we could be required to sell vessels in our fleet and our ability to continue to conduct our business would be impaired."

If one looks in the risks section of almost every public filing of any company, there's language like this. The CEO recently added to his personal holdings and owns about 35% of the company. The company trades for about one times this year's earnings right now and has $1.7bb in liquidity and zero short-term liquidity issues. In a recent interview the CEO said, "The underwriters put in a lot of risk factors to safeguard our back against litigation. We are not breaching any covenants and we are not at risk of breaching covenants. Nor are we planning on breaching them."

I'm buying very soon, preferably under $10; I want to see what the next "wave" of news brings also.

Position: none yet