George Economou’s Dryships shares dropped over 33% in trading on the Nasdaq on Monday after an 8 to 1 reverse stock split came into effect.
Reverse stock splits are known as a kiss of death for stocks, and this one proved no different if the first day is anything to go by. Having closed at $1.01 on Friday, DryShips shares were valued at $8.08 after Monday’s pre-market reverse split, and then proceeded to fall through the day to $5.40.
Today’s latest drop sees DryShips shares down an incredible 82% in 2017 so far.
News of a move into the LPG sector with the company acquiring its first VLGC, a new loan facility from Economou’s Sifnos, and promises by cfo Anthony Kandylidis to make Dryships great again have done little to stem the decline as investors remain spooked over a $200m share deal with the little-known Kalani Investments and the carnage that a reverse split usually brings to share prices.
Dryships shares have dropped over 1% further in after-hours trading.