Dryships shares hammered by investors after reverse stock split

Dryships shares hammered by investors after reverse stock split

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.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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