^
If you are looking at shipping, the biggest thing to consider is the Bulk Dry Index.
DRYS went bananas back in 2008 when China went on a iron/coal/steel buying spree and the Bulk Dry Index was over $100,000 per day. There were simply not enough ships in the world to satisfy China's appetite.
All the shipping companies ordered tons of ships, went deep into debt and just when all those ships were ready for delivery, China cooled, we were in The Great Recession and these things caused the BDI to crash all the way to less than $1000 per day. That is why DRYS was near bankrupt and is in default on many of its loans. Other shippers have went chapter 11 several times since the crash.
Right. I don't think anyone imagined this to be some long tern unicorn or whatever you call those--certainly not returning to whatever it was...$157k? per share?
Ugh still processing buys on DRYS from people thinking it's going to shoot back up again. This is where not being able to offer an opinion sucks.
I am fairly certain it never anywhere near $157K. May have been $125 per share.
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Those are split adjusted prices so it's relative to the many reverse splits over the years.Apparently, it was trading as high as $185,250 per share on Oct 25, 2007. Enjoyed several years in the 5-6 figure price.
...unless what you are saying is those were phony prices for some reason? Is that possible?
Those are split adjusted prices so it's relative to the many reverse splits over the years.
Pretty much. If you bought 100 shares at $1 a year ago and there was a 1:100 reverse the resulting one share you now own now has a basis of $100 per share.Oh I see. so the split of 25 > 1 shares and then 10 >1 and 5 >1 or whatever it was, is basically showing the price of one share at the current volume, that on that date in 2007 was the total value of 1250 shares?
The BDI is key. If most shippers were near or in bankruptcy with the BDI @ $1k per day, that should have told you everything you need to know. If you are renting ships out for a loss, you go bankrupt!
Also, as predicted, the CEO of Dry Ships floated a $20MM convertible bond offering based on the run up. Told you!
Finally this shipping bubble traded on hype and hope. There was nothing concrete.....yet. It was all musical chairs like the dot com era, with suckers buying at the top.
I see some people here are still in denial thinking there might be dead cat bounce. There's no oversold bounce on this kind of turd. Turds get flushed.
heh ouch. I should probably get out so I don't lose too much on my meager ship trade.A guy I know is in for 132 @ 24.88 after "buying the dips" all morning. He's not taking this very well...
EDIT: And just found out he can only sell 17 shares because of all the trades he's been making in his Robinhood account. Ouch...
heh ouch. I should probably get out so I don't lose too much on my meager ship trade.
Every time I make a fun trade it goes south heh. I don't usually put more than 1-200 on them but it would be fun to see one go big. 99% of my other investments are doing a-okay.hehe, yep. Already sold mine from this morning. I lost 200 bucks. Ah well. back to steady and boring zinfamous
This unicorn will still be around in a few days...perhaps just not where people had hoped to find it.
My only wish in this would be that the pro's that took it up were the ones hit the hardest by the halt. Unfortunately it usually doesn't work that way, and doesn't help those individuals that have been hurt after getting involved in it.
Fwiw, anyone who bought into it was trading, not investing (which is the basis of your analysis). Those are two totally different objectives (atleast those who may have bought it after it got hot), and volatility will always attract trading.
Right. I don't think anyone imagined this to be some long tern unicorn or whatever you call those--certainly not returning to whatever it was...$157k? per share? lol. There were probably tons with sell orders in between 100-$200.
I've rarely ever had clue about a company's financials before making trades (except symbols that end in 'Q' for bankruptcy), which is very intentional and preferred. Investing is a bet on valuation/growth etc., while trading is more a bet on what the next person(s) is going to do in the short term based on current price/dynamics.I wouldn't even call it trading... Playing with an insolvent company is straight up gambling or Russian roulette.
I caught the initial bounce and sold, thank god. Didn't lose any $.
But while I love volatility, I didn't touch this unicorn for two reasons. As rules of thumb, I do my best to never jump on bandwagons (many times regrettably) and do my best to avoid getting into something that I can't afford a worst-case scenario for, which this certainly applied. That's a great way to rarely hit grandslams, but will help one stay in the game in the long run.
Beyond that, imo both trading and investing is all gambling and all a game, just with varying degrees of perceived security/risk.
Indeed, DRYS (and even the other shipping stocks that reacted strongly to it) was like playing with knives, given the extreme levels of volatility and irrationalness.Oh ya, it's all gambling in the end. I mean it, took a while to realize it for me. Even investing in SPY is gambling.
But DRYS, one look at the 5 year chart and seeing a $150,000 share price made it obvious there was something permanently wrong.
Nothing gained, but nothing lost. Did better than I.
He didn't lose any because he never bought. Look at his supposed cost average and where the stock traded today. He claimed he was still in the stock at 11am.
I know people with ice water in their veins. Even they show more emotion when they're up/down $60k.
He didn't lose any because he never bought. Look at his supposed cost average and where the stock traded today. He claimed he was still in the stock at 11am.
I know people with ice water in their veins. Even they show more emotion when they're up/down $60k.