Boston, MA 04/23/2014 (wallstreetpr) – DryShips Inc. (NASDAQ:DRYS) shares has lost roughly one-third of its value in 2014. This performance is not largely due to underperforming market. Its shares have underperformed the broader S&P 500 Index (SPX) by nearly 33%. The company revealed its unaudited financial and operating fourth quarter results ended in December 2013. It reported a net loss of $24.4 million and $0.6 per share for the fourth quarter. For the year ended in December 2013, it reported an annual loss of 223.1 million and $0.58 per share.
Falling Baltic Dry Index
Amid some bearish news such as Falling Baltic Dry Index (BDI), slowdown in China and shorts have piled into DryShips Inc. (NASDAQ:DRYS) so there could be a small squeeze. BDI is a number issued by London- based Baltic Exchange every day. It provides an assessment of price of moving major raw material through sea routes. BDI has plunged down to 970 on April 15. Any slowdown in BDI would affect the company adversely. In order to offset this effect, company is shifting its plan towards operation based on the BDI and letting fixed rate contracts expire.
Recovery Anticipated
In the midst of the pessimistic events, which caused the down movement of share, it is expected to recover soon, as the reasons that affected the share price are short term in nature. BDI is likely to rebound. Demand from China are also expected to be robust in the near future. As per the Bloomberg report, demand for imports from china would be vigorous. China is fueling its growth through indigenous steel production plant. Daily crude steel production in China was 2.096 million tons in mid-march, hurled from 1.97 million tons in mid-February, as per data from China Iron & Steel Association. Iron ore exports to China from Australia climbed to a record high last month as a sign of increasing demands from China. So, DryShips Inc. (NASDAQ:DRYS)’s stock potential are expectant.
