We started to get interested in dry-bulk shipper DRYS a couple of weeks ago, when it was in the mid 70s. From a technical point of view, we thought a break-out would be likely, and it almost instantly complied. Then, last week, we advised to take some money of the table when it was in the mid 80s, also for technical reasons.
It keeps rising, economic growth is not as bad as feared, and hence day-shipping spot rates are doing well. They made a terrific take-over buying a majority stake in a Norwegian deep ocean drilling company, diversifying into an industry which is in the early parts of a profound upswing.
Also, last Friday, Credit Suisse started covering the company with an initial buy and a $110 price target. We’re closing in on that.
However, now again, we think we’re getting just a little bit ahead, and if you haven’t taken off some money last week, you have a second, better chance now at $94-5. It might pop a little bit more, but we’re getting into overbought territory with the RSI above 70, as you can see below.