U.S. shares lower at close of trade;
Dow Jones Industrial Average down 0.33%
Jan 20, 2017 01:55
U.S. equities were lower at the close on Thursday,
as losses in the Utilities, Oil & Gas and Healthcare
sectors propelled shares lower.
At the close in NYSE, the Dow Jones Industrial
Average fell 0.33% to hit a new 1-month low, while
the S&P 500 index fell 0.32%, and the NASDAQ
Composite index fell 0.24%.
The biggest gainers of the session on the Dow
Jones Industrial Average were Boeing Company
(NYSE:BA), which rose 0.86% or 1.36 points to
trade at 159.69 at the close. UnitedHealth Group
Incorporated (NYSE:UNH) added 0.49% or 0.78
points to end at 158.52 and Caterpillar Inc (NYSE:
CAT) was up 0.26% or 0.24 points to 93.57 in late trade.
Biggest losers included Exxon Mobil Corporation
(NYSE:XOM), which lost 1.76% or 1.52 points to
trade at 84.76 in late trade. Merck & Company Inc
(NYSE:MRK) declined 1.65% or 1.01 points to end
at 60.16 and Goldman Sachs Group Inc (NYSE:GS)
shed 1.19% or 2.79 points to 231.50.
The top performers on the S&P 500 were CSX
Corporation (NASDAQ:CSX) which rose 22.29%
to 45.10, Netflix Inc (NASDAQ:NFLX) which was
up 4.60% to settle at 139.39 and Norfolk Southern
Corporation (NYSE:NSC) which gained 4.13% to
close at 114.51.
The worst performers were Chesapeake Energy
Corporation (NYSE:CHK) which was down 5.85%
to 6.572 in late trade, Western Union Company
(NYSE:WU) which lost 3.84% to settle at 21.01
and JB Hunt Transport Services Inc (NASDAQ:JBHT)
which was down 3.72% to 94.38 at the close.
The top performers on the NASDAQ Composite
were Delta Technology Holding Ltd (NASDAQ:DELT)
which rose 143.97% to 2.1101, NF Energy Saving
Corporation (NASDAQ:NFEC) which was up 48.05%
to settle at 1.3400 and Bioanalytical Systems Inc
(NASDAQ:BASI) which gained 40.47% to close at 0.985.
The worst performers were DryShips Inc (NASDAQ:DRYS)
which was down 34.28% to 1.04 in late trade, Amedica
Corp (NASDAQ:AMDA) which lost 31.37% to settle at
0.435 and Delcath Systems Inc (NASDAQ:DCTH) which
was down 23.91% to 0.3115 at the close.
Declining stocks outnumbered rising ones by 2293
to 833 and 72 ended unchanged; on the Nasdaq
Stock Exchange, 1753 fell and 714 advanced, while
114 ended unchanged on the New York Stock Exchange.
The CBOE Volatility Index, which measures the
implied volatility of S&P 500 options, was up 4.57%
to 13.05.
In commodities trading, Gold for February delivery
was down 0.60% or 7.30 to $1204.80 a troy ounce.
Meanwhile, Crude oil for delivery in February rose
0.57% or 0.29 to hit $51.37 a barrel, while the March
Brent oil contract rose 0.52% or 0.28 to trade at $54.20
a barrel.
EUR/USD was up 0.24% to 1.0656, while USD/JPY
rose 0.18% to 114.87.The US Dollar Index was down
0.14% at 101.17.
Why DryShips Stock Dropped 30% Today
An unpopular "reverse split" has investors spooked.
Rich Smith (TMFDitty) Jan 19, 2017 at 12:44PM
What happened
Dry bulk shipper DryShips (NASDAQ:DRYS) is
biting investors in the portfolio again today, with its
stock plunging as much as 30% in early Thursday
trading. At last report, the stock was still trading
down 25.2% as of 12: p.m. EST.
So what
For DryShips investors, it never rains, but it
does pour -- either profits or losses. Last year,
the stock scored a series of enormous gains in
response to a combination of investor optimism
over the election of Donald Trump as president
and a resurgence in shipping prices on the Baltic
Dry Index (BDI).
This year, the topsy-turvy world of DryShips
stock investing looks to be just as fraught.
On the one hand, the BDI is on the upswing
again after suffering a rough start to the beginning
of the year. On the other hand, DryShips stock --
recently quoted at just $1.18 per share -- has just
announced that it will conduct a "reverse split" of its stock.
Now what
Much as investors love stock splits, they hate
reverse splits -- and this one is a doozy. For
every eight shares of DryShips that investors
own today, the company will trade them just
one share of stock on Jan. 23.
This isn't exactly "news." In fact, DryShips
investors authorized their board to conduct a
reverse split at the company's annual general
meeting on Oct. 26, 2016. But at that time,
management hadn't settled on the precise ratio
of old shares to be eliminated in proportion to
new shares issued. Today's announcement makes
that vague threat from October and real today --
and it's apparently spooking investors -- and rightly
so. After the split, DryShips will have only 8.7 million
shares afloat so few shares will vastly reduce liquidity,
making the stock even more vulnerable to dramatic
rises (and falls) in price in days to come.
Buckle up, passengers. It's going to be a rocky ride.
Trump victory could spark greatest bull market in decades
We aren't politicos here at The Motley Fool. But we know
a great investing opportunity when we see one.
Our analysts spotted what could be a $1.6 trillion
opportunity lurking in Donald Trump's infrastructure
plans. And given this team's superb track record
(more than tripling the market over the past decade*),
you don't want to miss what they found.
They've picked 11 stocks poised to profit from Trump's
first 100 days as president. History has shown that
getting in early on a good idea can often pay big bucks –
so don't miss out on this moment.
ATHENS, GREECE--(Marketwired - Jan 19, 2017) -
DryShips Inc. ( NASDAQ : DRYS ) (the "Company" or
"DryShips"), a diversified owner of ocean group cargo
vessels, announced today that its Board of Directors (the
"Board") has determined to effect a 1-for-8 reverse stock
split of the Company's common shares. At the Company's
annual general meeting of shareholders on October 26, 2016,
the Company's shareholders approved the reverse stock split
and granted the Board, or a duly constituted committee thereof,
the authority to determine the exact split ratio and proceed with
the reverse stock split.
The reverse stock split will take effect, and the Company's
common stock will begin trading on a split-adjusted basis on
the Nasdaq Capital Market, as of the opening of trading on
January 23, 2017 under the existing trading symbol "DRYS".
The new CUSIP number for the common stock following the
reverse stock split is Y2109Q408.
When the reverse stock split becomes effective, every 8
shares of the Company's issued common stock will be
automatically combined into one issued share of common
stock. As of the date of this press release, the Company
had 69,357,841 common shares issued. Effecting the reverse
stock split will reduce the number of issued common shares
from 69,357,841 shares to approximately 8.7 million shares.
No fractional shares will be issued in connection with the
reverse split of the issued common stock. Shareholders
who would otherwise hold a fractional share of the Company's
common stock will receive a cash payment in lieu thereof
at a price equal to that fraction to which the shareholder would
otherwise be entitled multiplied by the closing price of the
Company's common stock on the Nasdaq Capital Market on
January 20, 2017.
Shareholders with shares held in book-entry form or through
a bank, broker, or other nominee are not required to take any
action and will see the impact of the reverse stock split reflected
in their accounts on or after January 23, 2017. Such beneficial
holders may contact their bank, broker, or nominee for more
information.
Shareholders with shares held in certificate form will receive
instructions from the Company's exchange agent, American
Stock Transfer & Trust Company, LLC, for exchanging their
stock certificates for a new certificate representing the shares
of common stock resulting from the reverse split.
Additional information about the reverse stock split can be
found in the Company's proxy statement furnished to the
Securities and Exchange Commission on September 23, 2016,
a copy of which is available on the Commission's website at
www.sec.gov.
About DryShips
DryShips Inc. is an owner of drybulk carriers and offshore
support vessels that operate worldwide. DryShips owns
a fleet of 13 Panamax drybulk carriers with a combined
deadweight tonnage of approximately 1.0 million tons, and
6 offshore supply vessels, comprised of 2 platform supply
and 4 oil spill recovery vessels.
DryShips' common stock is listed on the NASDAQ Capital
Market where it trades under the symbol "DRYS."
Visit the Company's website at www.dryships.com. The
information contained on the Company's website does not
constitute a part of this press release.
Forward-Looking Statements
Matters discussed in this release may constitute forward
-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The Private
Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order
to encourage companies to provide prospective information
about their business. The Company desires to take
advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with such safe harbor legislation.
Forward-looking statements reflect our current views with
respect to future events and financial performance and may
include statements concerning plans, objectives, goals, strategies,
future events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts.
The forward-looking statements in this release are based
upon various assumptions, many of which are based, in turn,
upon further assumptions, including without limitation,
management's examination of historical operating trends, data
contained in our records and other data available from third parties.
Although we believe that these assumptions were reasonable
when made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond our control, we cannot assure
you that it will achieve or accomplish these expectations, beliefs
or projections.
January 12, 2017
Insys Could Be The Next Major
Short Squeeze Play:
Experienced traders know there are no sure things
in the stock market. Sometimes, the exact time
when it seems like things couldn’t get any worse
for a stock is the time it has the most explosive
short squeeze potential. That may very well be the
case for Insys Therapeutics Inc (NASDAQ: INSY).
Take DryShips Inc (NASDAQ: DRYS), for example.
DryShips seemed as if it was destined for
bankruptcy in early November. After multiple
reverse stock splits and a message from the
company that management had “substantial
doubt about the company’s ability to continue,”
DryShips shares exploded from under $4 to over
$100 in a matter of days.
Did the market get the DryShips story wrong? Of
course not. Less than two months later, DryShips
shares are now back at $2. There were just so many
people betting against DryShips that even the slightest
bit of positive news (rising Baltic Dry Index) ignited a
short squeeze of historical proportions.
Insys’ primary cash cow, opioid painkiller Subsys, is
experiencing declining volumes. President-elect Donald
Trump has been bashing drug companies on pricing. The
FDA has been cracking down on potentially-addictive opioid
drugs. And to cap it all off, the former Insys CEO was just
indicted and charged with racketeering and bribing doctors.
It’s no wonder that so many traders are betting against
Insys, but those bets also make the stock a major
short squeeze candidate.
According to shortsqueeze.com, Insys has a staggering
short percent of float of 77.4 percent. There are currently
more than 17.3 million Insys shares held short with 20.0
days to cover.
With that incredible level of short interest, it wouldn’t
take much, if anything, to trigger a short squeeze that
could send shares skyrocketing overnight.
Dow Jones Industrial Average down 0.33%
Jan 20, 2017 01:55
U.S. equities were lower at the close on Thursday,
as losses in the Utilities, Oil & Gas and Healthcare
sectors propelled shares lower.
At the close in NYSE, the Dow Jones Industrial
Average fell 0.33% to hit a new 1-month low, while
the S&P 500 index fell 0.32%, and the NASDAQ
Composite index fell 0.24%.
The biggest gainers of the session on the Dow
Jones Industrial Average were Boeing Company
(NYSE:BA), which rose 0.86% or 1.36 points to
trade at 159.69 at the close. UnitedHealth Group
Incorporated (NYSE:UNH) added 0.49% or 0.78
points to end at 158.52 and Caterpillar Inc (NYSE:
CAT) was up 0.26% or 0.24 points to 93.57 in late trade.
Biggest losers included Exxon Mobil Corporation
(NYSE:XOM), which lost 1.76% or 1.52 points to
trade at 84.76 in late trade. Merck & Company Inc
(NYSE:MRK) declined 1.65% or 1.01 points to end
at 60.16 and Goldman Sachs Group Inc (NYSE:GS)
shed 1.19% or 2.79 points to 231.50.
The top performers on the S&P 500 were CSX
Corporation (NASDAQ:CSX) which rose 22.29%
to 45.10, Netflix Inc (NASDAQ:NFLX) which was
up 4.60% to settle at 139.39 and Norfolk Southern
Corporation (NYSE:NSC) which gained 4.13% to
close at 114.51.
The worst performers were Chesapeake Energy
Corporation (NYSE:CHK) which was down 5.85%
to 6.572 in late trade, Western Union Company
(NYSE:WU) which lost 3.84% to settle at 21.01
and JB Hunt Transport Services Inc (NASDAQ:JBHT)
which was down 3.72% to 94.38 at the close.
The top performers on the NASDAQ Composite
were Delta Technology Holding Ltd (NASDAQ:DELT)
which rose 143.97% to 2.1101, NF Energy Saving
Corporation (NASDAQ:NFEC) which was up 48.05%
to settle at 1.3400 and Bioanalytical Systems Inc
(NASDAQ:BASI) which gained 40.47% to close at 0.985.
The worst performers were DryShips Inc (NASDAQ:DRYS)
which was down 34.28% to 1.04 in late trade, Amedica
Corp (NASDAQ:AMDA) which lost 31.37% to settle at
0.435 and Delcath Systems Inc (NASDAQ:DCTH) which
was down 23.91% to 0.3115 at the close.
Declining stocks outnumbered rising ones by 2293
to 833 and 72 ended unchanged; on the Nasdaq
Stock Exchange, 1753 fell and 714 advanced, while
114 ended unchanged on the New York Stock Exchange.
The CBOE Volatility Index, which measures the
implied volatility of S&P 500 options, was up 4.57%
to 13.05.
In commodities trading, Gold for February delivery
was down 0.60% or 7.30 to $1204.80 a troy ounce.
Meanwhile, Crude oil for delivery in February rose
0.57% or 0.29 to hit $51.37 a barrel, while the March
Brent oil contract rose 0.52% or 0.28 to trade at $54.20
a barrel.
EUR/USD was up 0.24% to 1.0656, while USD/JPY
rose 0.18% to 114.87.The US Dollar Index was down
0.14% at 101.17.
Why DryShips Stock Dropped 30% Today
An unpopular "reverse split" has investors spooked.
Rich Smith (TMFDitty) Jan 19, 2017 at 12:44PM
What happened
Dry bulk shipper DryShips (NASDAQ:DRYS) is
biting investors in the portfolio again today, with its
stock plunging as much as 30% in early Thursday
trading. At last report, the stock was still trading
down 25.2% as of 12: p.m. EST.
So what
For DryShips investors, it never rains, but it
does pour -- either profits or losses. Last year,
the stock scored a series of enormous gains in
response to a combination of investor optimism
over the election of Donald Trump as president
and a resurgence in shipping prices on the Baltic
Dry Index (BDI).
This year, the topsy-turvy world of DryShips
stock investing looks to be just as fraught.
On the one hand, the BDI is on the upswing
again after suffering a rough start to the beginning
of the year. On the other hand, DryShips stock --
recently quoted at just $1.18 per share -- has just
announced that it will conduct a "reverse split" of its stock.
Now what
Much as investors love stock splits, they hate
reverse splits -- and this one is a doozy. For
every eight shares of DryShips that investors
own today, the company will trade them just
one share of stock on Jan. 23.
This isn't exactly "news." In fact, DryShips
investors authorized their board to conduct a
reverse split at the company's annual general
meeting on Oct. 26, 2016. But at that time,
management hadn't settled on the precise ratio
of old shares to be eliminated in proportion to
new shares issued. Today's announcement makes
that vague threat from October and real today --
and it's apparently spooking investors -- and rightly
so. After the split, DryShips will have only 8.7 million
shares afloat so few shares will vastly reduce liquidity,
making the stock even more vulnerable to dramatic
rises (and falls) in price in days to come.
Buckle up, passengers. It's going to be a rocky ride.
Trump victory could spark greatest bull market in decades
We aren't politicos here at The Motley Fool. But we know
a great investing opportunity when we see one.
Our analysts spotted what could be a $1.6 trillion
opportunity lurking in Donald Trump's infrastructure
plans. And given this team's superb track record
(more than tripling the market over the past decade*),
you don't want to miss what they found.
They've picked 11 stocks poised to profit from Trump's
first 100 days as president. History has shown that
getting in early on a good idea can often pay big bucks –
so don't miss out on this moment.
ATHENS, GREECE--(Marketwired - Jan 19, 2017) -
DryShips Inc. ( NASDAQ : DRYS ) (the "Company" or
"DryShips"), a diversified owner of ocean group cargo
vessels, announced today that its Board of Directors (the
"Board") has determined to effect a 1-for-8 reverse stock
split of the Company's common shares. At the Company's
annual general meeting of shareholders on October 26, 2016,
the Company's shareholders approved the reverse stock split
and granted the Board, or a duly constituted committee thereof,
the authority to determine the exact split ratio and proceed with
the reverse stock split.
The reverse stock split will take effect, and the Company's
common stock will begin trading on a split-adjusted basis on
the Nasdaq Capital Market, as of the opening of trading on
January 23, 2017 under the existing trading symbol "DRYS".
The new CUSIP number for the common stock following the
reverse stock split is Y2109Q408.
When the reverse stock split becomes effective, every 8
shares of the Company's issued common stock will be
automatically combined into one issued share of common
stock. As of the date of this press release, the Company
had 69,357,841 common shares issued. Effecting the reverse
stock split will reduce the number of issued common shares
from 69,357,841 shares to approximately 8.7 million shares.
No fractional shares will be issued in connection with the
reverse split of the issued common stock. Shareholders
who would otherwise hold a fractional share of the Company's
common stock will receive a cash payment in lieu thereof
at a price equal to that fraction to which the shareholder would
otherwise be entitled multiplied by the closing price of the
Company's common stock on the Nasdaq Capital Market on
January 20, 2017.
Shareholders with shares held in book-entry form or through
a bank, broker, or other nominee are not required to take any
action and will see the impact of the reverse stock split reflected
in their accounts on or after January 23, 2017. Such beneficial
holders may contact their bank, broker, or nominee for more
information.
Shareholders with shares held in certificate form will receive
instructions from the Company's exchange agent, American
Stock Transfer & Trust Company, LLC, for exchanging their
stock certificates for a new certificate representing the shares
of common stock resulting from the reverse split.
Additional information about the reverse stock split can be
found in the Company's proxy statement furnished to the
Securities and Exchange Commission on September 23, 2016,
a copy of which is available on the Commission's website at
www.sec.gov.
About DryShips
DryShips Inc. is an owner of drybulk carriers and offshore
support vessels that operate worldwide. DryShips owns
a fleet of 13 Panamax drybulk carriers with a combined
deadweight tonnage of approximately 1.0 million tons, and
6 offshore supply vessels, comprised of 2 platform supply
and 4 oil spill recovery vessels.
DryShips' common stock is listed on the NASDAQ Capital
Market where it trades under the symbol "DRYS."
Visit the Company's website at www.dryships.com. The
information contained on the Company's website does not
constitute a part of this press release.
Forward-Looking Statements
Matters discussed in this release may constitute forward
-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The Private
Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order
to encourage companies to provide prospective information
about their business. The Company desires to take
advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with such safe harbor legislation.
Forward-looking statements reflect our current views with
respect to future events and financial performance and may
include statements concerning plans, objectives, goals, strategies,
future events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts.
The forward-looking statements in this release are based
upon various assumptions, many of which are based, in turn,
upon further assumptions, including without limitation,
management's examination of historical operating trends, data
contained in our records and other data available from third parties.
Although we believe that these assumptions were reasonable
when made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond our control, we cannot assure
you that it will achieve or accomplish these expectations, beliefs
or projections.
January 12, 2017
Insys Could Be The Next Major
Short Squeeze Play:
Experienced traders know there are no sure things
in the stock market. Sometimes, the exact time
when it seems like things couldn’t get any worse
for a stock is the time it has the most explosive
short squeeze potential. That may very well be the
case for Insys Therapeutics Inc (NASDAQ: INSY).
Take DryShips Inc (NASDAQ: DRYS), for example.
DryShips seemed as if it was destined for
bankruptcy in early November. After multiple
reverse stock splits and a message from the
company that management had “substantial
doubt about the company’s ability to continue,”
DryShips shares exploded from under $4 to over
$100 in a matter of days.
Did the market get the DryShips story wrong? Of
course not. Less than two months later, DryShips
shares are now back at $2. There were just so many
people betting against DryShips that even the slightest
bit of positive news (rising Baltic Dry Index) ignited a
short squeeze of historical proportions.
Insys’ primary cash cow, opioid painkiller Subsys, is
experiencing declining volumes. President-elect Donald
Trump has been bashing drug companies on pricing. The
FDA has been cracking down on potentially-addictive opioid
drugs. And to cap it all off, the former Insys CEO was just
indicted and charged with racketeering and bribing doctors.
It’s no wonder that so many traders are betting against
Insys, but those bets also make the stock a major
short squeeze candidate.
According to shortsqueeze.com, Insys has a staggering
short percent of float of 77.4 percent. There are currently
more than 17.3 million Insys shares held short with 20.0
days to cover.
With that incredible level of short interest, it wouldn’t
take much, if anything, to trigger a short squeeze that
could send shares skyrocketing overnight.
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