Another Sign Shippers Are Sinking
The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and consumer goods editor and analyst Austin Smith discuss topics across the investing world.
In today's edition, Brendan and Austin take a look at DryShips, which recently announced that it will be selling 10 million shares of its Ocean Rig subsidiary. DryShips is a dry bulk shipper at its core, but actually got the majority of its revenues last year from its drilling rig segment. Selling the shares in Ocean Rig will help improve DryShips' cash position as the company waits for the dry bulk industry to recover, but Brendan thinks the company would be better served holding onto the shares. He also names a shipper that he likes better than DryShips and gives his overall outlook for the industry.
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At the time this article was published Austin Smith and Brendan Byrnes have no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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