DryShips (DRYS) Shares Ripping Higher as Waiver News Squeezes Shorts
Shares of DryShips (Nasdaq: DRYS) are rocketing higher this morning following news earlier that the dry bulk shipper has reached an agreement with HSH Nordbank on waiver terms for $654 million of DryShip's outstanding debt.
The stock is currently up more than 22% to $7.43. Strength in this stock, which is the most heavily-traded shipper in the sector, is pulling the entire dry bulk group higher today. Elsewhere in the sector: Diana Shipping (NYSE: DSX) up 5.6%, Excel Maritime (NYSE: EXM) up 7.4%, Genco (NYSE: GNK) up 9.7%, Navios Maritime (NYSE: NM) up 5.8% and Eagle Bulk Shipping (Nasdaq: EGLE) is up 9.3%.
With over $700 million of equity raised during the last week, today's upside sector-move may be getting exasperated as short-sellers cover their downside bets. Stocks sector-wide have been beaten down on these dilution fears. DryShips, for example, which announced Friday that it plans to raise another $475 million in equity, has fallen about 40% since the announcement.
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