Why DryShips Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of dry bulk shipper DryShips (NAS: DRYS) jumped 11% in early trading after coverage was initiated by an analyst.
So what: Global Hunter Securities initiated coverage on the company with a buy rating, causing a frenzy in early trading. The euphoria didn't last long, and shares are now up only about 3% on a day when the market is also up nicely.
Now what: At The Motley Fool, we don't take analyst upgrades too seriously. I certainly wouldn't buy into this pop because of an upgrade, and with dry bulk rates still depressed, I would be hesitant buying the stock at any price. The company's biggest asset is a majority stake in Ocean Rig (NAS: ORIG) , but if you want exposure to that, you should just buy the company's shares instead of DryShips.
Interested in more info on DryShips? Add it to your watchlist byclicking here.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.