After being halted yesterday for “news pending” when near-insolvent drybulk carrier DryShips soared nearly 2,000% in a few days on no news, among a broad rally in the dry bulk shipping sector and a vicious short squeeze, earlier today, the company announced it would waste no time to monetize the surge in its market cap, and reported that it had started the direct offering of 20,000 in convertible preferred shares. DRYS, whose market cap was halted at just over $80 million, announced that it may receive up to $80m additional proceeds if all preferred warrants are exercised, with the proceeds used for general purposes and/or to repay debt.
All this happened while the stock was still halted. It was then released from halt some 10 minutes ago, at which point it proceeded to plunge, triggering another trading halt, when it crashed by nearly 40%, as the retail momentum chasers who had “climbed aboard” this particular one-week wonder, all decided they have had enough of the ride.
It has been since unhalted, only to plunge once again, tumbling some 67% as of this moment, in a wild, and voltile ride which we can only hope can be a lesson to retail investors that what goes up fast, will usually go down even faster.
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