Shares in George Economou’s Nasdaq-listed DryShips were given a hammering by investors on Friday after the company announced a 1-4 reverse stock split, the second reverse stock split this year.
DryShips shares closed down on Friday at just 70 cents, a single day drop of 32%, after the latest reverse split was announced.
In January, DryShips shares were valued at $8.08 after a 1-8 reverse stock split and over the last three months had fallen back to around the $1 mark over investor concerns of share dilution stemming from multiple share sales to Kalani Investments.
This latest plunge in share price means that DryShips shares have dropped by more than 97% since the end of 2016.
April 11 will see the reverse stock split take effect, subjecting DryShips shares to increased selling pressure and wild price swings.