DRYS Partners (NASDAQ: TRIS) at https://www.webull.com/quote/nasdaq-drys traded up 23% on Thursday morning. There is no agreement yet, but the company’s board has set up a special committee to consider the project.
Greece-based Athens said it had received an unrestricted offer from SPII Holdings, which is controlled by Economo. It did not disclose the terms of the proposed contract.
DRYSis a turbulent role, tied to a highly cyclical cruise ship. The company, which has 32 dry bulk and crude carriers, has declined by more than 40% to date, amid concerns about the impact of customs and trade wars on global shipping.
Given the recent downward pressure on stocks and uncertainty for the economy, it is not surprising that shareholders are encouraging a buyout offer. But investors would be wise not to get ahead of themselves.
The SBI offer is not restricted, and we still don’t know what the Economy team is willing to pay for dry ships stocks. There can be a lot of misunderstanding between now and the potential consumption of the purchase. Global trade may worsen, or tensions may rise in the Middle East, feeding the need for the services of dry vessels and reducing their valuation.
After the bump on Thursday, shares of triceps are trading below where they were in late April. There is good reason to be wary of a potential deal.
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- The stock of DRYS Inc. is rising today
- Shares of DRYSInc (NASDAQ: DRIS) rallied more than 10% at 2:45 pm. ETD on Monday. Some factors make the stakes higher.
Ship stocks are rampant today. A catalyst that drives elegance is that the Baltic Dry news Index is rising for the third straight year and is currently at the upper end of its 52-week range. An index that measures changes in shipping rates is considered the leading economic indicator of future shipping demand. So if the index rises, shipping companies will have to increase their earnings rates when they lease their ships to customers, which will increase the profitability of companies like DRYS.
Adding fuel to the shipping rally is a rebound in Chinese stock prices because of its optimistic view of the economy. Since China is a huge shipping market, the rising tide in China will, in theory, lift all boats, including ship demand.
On top of that, the Trump administration has announced that it will withdraw from the Universal Postal Union, which will help reduce shipping costs for developing countries. In any case, the U.S. administration believes that China and others are using it to gain more competitive advantage. Withdrawals can help increase shipping costs, which can also benefit a company like DRYS. If you want to know more NASDAQ VFF, you can check at https://www.webull.com/quote/nasdaq-vff